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- Ripple’s transfer of 200 million XRP sparks market interest.
- Monthly escrow releases manage XRP supply effectively.
Whale Alert reports that 200 million XRP were transferred between two addresses today. Given that the addresses are unknown, this over $100 million transfer is quite noteworthy.
🚨 🚨 🚨 🚨 200,000,000 #XRP (94,554,479 USD) transferred from unknown wallet to unknown wallethttps://t.co/mb8TQ9p3nU
— Whale Alert (@whale_alert) June 30, 2024
On-Chain Data Insights
Examining the on-chain data from Bithomp, it finds that 100 XRP was transferred back in 2021, activating the recipient address “rJqiMb94.”
Moreover, this address already held an amazing value of 7.32 million XRP before getting the 200 million tokens. Given the wallet size and the overlap with Ripple, it makes sense to believe the address belongs to the crypto firm itself.
Regarding the sender address, although it has a value of 70 million XRP, it is somewhat new and was activated by an unidentified transfer. Today it has 5.12 million tokens.
This transfer most likely results from Ripple movement of funds from one of its wallets to another. This behavior fits the first day of the month, the day the crypto business releases some of its XRP reserves from escrow accounts into the market.
Escrow Mechanism of Ripple
Under Ripple’s XRP system, XRP is stored in a sequence of escrow accounts in rather large quantities. One billion XRP is released from an escrow account each month, from which any unneeded tokens are refunded at the end of the month. This approach is meant to limit supply, therefore guaranteeing a regulated token release and helping to maintain prices constant.
Meanwhile, data from CoinMarketCap shows that XRP’s price at the time of writing is at $0.4819, having climbed 2.09% over the last 24 hours. With a gain of 1.44%, this also shows a positive outlook for the last 7 days.
Prior to now, CNF reported that Ripple President Monica Long had stressed the importance of regulatory clarity for XRP and significant trading volume as factors supporting the possibility of a future XRP ETF.
