It is known that Ripple, which emerged many years ago, still controls a significant amount of the supply of its native token XRP and continues to sell hundreds of millions of tokens regularly every month. This situation also brings about major question marks about the future of XRP in the market.
Ripple Sells XRP
Ripple particularly drew attention at the beginning of March after unlocking 1 billion tokens. After this new unlock, the company set aside 200 million tokens for sale, sending a negative signal to the market. The company then locked the remaining 800 million XRP in new escrow contracts pointing to July and August 2027.
However, by March 13, the company had already disposed of an additional 40 million XRP on top of the previous reserve of 200 million. This situation stood out as a massive sale that arose in less than 15 days, contrary to the norm, causing concern and raising questions.
The first sale was marked on the calendars for March 5. During this time, the event occurred four days after the unlocking of Ripple’s treasury account (Ripple 1) and the receipt of 200 million. The company then sold the remaining 140 million XRP, which came from an inactive address under Ripple’s control and was tagged as ‘Ripple 52’ by XRPScan.
Will XRP Decline as Ripple’s Sales End?
It is worth noting that the 240 million XRP sold today are worth over $150 million. On the other hand, XRP is trading at $0.63. This points to only 0.45% of XRP’s market value of $34.10 billion.
Economically, the sales Ripple is conducting could significantly affect the token price by revealing the effects of supply inflation. This impact has also been reflected in daily charts with price drops on every Ripple sale day.
On the other hand, if Ripple stops its sales, XRP could initiate a new upward movement during the remainder of March. However, the fact that Ripple has sold this month’s reserves does not mean there will be no new sales in March. Ripple still has hundreds of millions of XRP waiting to be sold, creating significant uncertainty.
