Ripple, the largest proprietor of XRP and a cryptocurrency payments company has initiated another large-scale transaction that has captured the attention of the cryptocurrency market
The exchange network and payment protocol have disposed of 150 million XRP or roughly 0.25 percent of the current market capitalization of the cryptocurrency.
The Massive-Scale Transfer of Ripple
Whale Alert, a blockchain tracking and analytics system, disclosed in a recent X (formerly Twitter) post on Wednesday, May 13, that Ripple had sold 150 million XRP tokens for a total value exceeding $75.7 million.
The significant XRP transmission was received at an anonymous crypto wallet address designated as “rP4X2hTa7A,” which Ripple had authorized.
A time difference of one hour separated the two transactions through which the transfer was completed. A transfer of 100 million XRP, valued at approximately $55,776,737, was identified as occurring between an anonymous wallet address ‘rhWt2bhRq’ and ‘rP4X2hTa7A,’ according to Whale Alert.
The subsequent exchange accounted for a 50 million XRP transfer to ‘rP4X2hTa7A,’ valued at approximately $27.8 million.
Bithomp, an explorer for the XRP Ledger (XRPL), reports that Ripple has maintained a consistent relationship with the wallet address rP4X2hTa7A. The cryptocurrency payments company transmitted a staggering 100 million XRP to the wallet address listed above earlier on April 24. Subsequently, segments of the cryptocurrencies were transferred from the wallet to several external addresses.
After transferring XRP to rP4X2hTa7A, the anonymous wallet address retained 50 million XRP and transferred the remaining 100 million XRP to an unknown wallet. A sell-off may ensue should this distribution pattern persist, which may hurt the price of XRP, which has been consolidating near the $0.5 threshold.
Price Analysis of XRP
Even though Ripple has already transferred 150 million XRP this year, a possible sell-off could have a catastrophic impact on the cryptocurrency. Historically, there has been a tendency for the value of XRP to undergo marginal decreases after Ripple’s token sales.
Consistent with this pattern, Ripple’s recent XRP transfer may have precipitated a significant decline in the cryptocurrency’s value. A few days ago, the price of XRP was approximately $0.5. CoinMarketCap reports that the cryptocurrency is trading at $0.49 at the time of writing, having declined by 1.37% over the previous twenty-four hours and 4.03% in the last week.
