Is Ripple Dumping XRP Again?

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Ripple, the cryptocurrency payments company and the largest holder of XRP, has initiated another large-scale transaction, sparking concerns in the crypto market. The company transferred 150 million XRP, approximately 0.25% of the cryptocurrency’s current market capitalization, to an anonymous wallet address.

The transfer occurred in two separate transactions, with a one-hour time difference. The recipient wallet address, identified as “rP4X2hTa7A,” received 100 million XRP from another anonymous wallet address, followed by a transfer of 50 million XRP.

This is not the first time Ripple has made such a large transfer. Earlier on April 24, the company transferred 100 million XRP to the same wallet address. Afterward, portions of the cryptocurrency were distributed to several external addresses.

It’s important to note that Ripple initiated this 150 million XRP transaction after releasing 1 billion XRP tokens on May 1 from its regular monthly escrow unlock. Following this release, Ripple distributed 200 million XRP to its personal treasury account and allocated the rest to new escrows.

XRPScan data also revealed that Ripple’s treasury account, identified as ‘Ripple (1),’ sent the tokens to the aforementioned wallet address, effectively increasing XRP’s supply inflation by introducing new tokens into the market.

After receiving the XRP escrow deposit, the anonymous wallet address retained 50 million XRP and transferred the remaining 100 million XRP to another unknown wallet. This distribution pattern suggests a potential sell-off, which could impact the price of XRP.

Historically, XRP’s value tends to experience slight declines after Ripple sells its tokens. Following this trend, Ripple’s recent XRP transfer may have contributed to the cryptocurrency’s price decline. XRP’s price is currently trading at $0.49, having declined by 1.37% over the past 24 hours and 4.03% in the previous week.

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