Ripple (XRP) Reserve Activity Breakdown for July 2024: Regular Sales Continue to Weigh on Token Value

Ripple, the firm responsible for the XRP Ledger and the largest XRP holder, sold 150 million XRP from its reserves on July 9. This sale, worth about

Ripple, the company behind the XRP Ledger and the largest XRP holder, sold 150 million XRP from its reserves on July 9. This sale, worth about $64.5 million, is expected to impact the market sentiment and put pressure on XRP’s price.

According to data from crypto intelligence firm IntoTheBlock, Ripple allocated an extra 100 million XRP to its sell-off reserves on July 1. This brings the total XRP available for sale to 300 million XRP.

Out of the 1 billion XRP released from monthly escrow on July 1, 200 million XRP were transferred to Ripple’s treasury, while the remaining 800 million XRP were placed into new escrow accounts.

Usually, Ripple sells XRP by moving tokens from its treasury account, designated as “Ripple (1),” to an unlabeled account (rP4X2hTa). This action introduces previously uncirculated tokens into the market, thereby increasing the circulating supply.

At present, 100 million XRP remain in the “rP4X2hTa” account, while 50 million XRP have already been transferred to another intermediary account (rhWt2bhR) before potentially being sent to centralized exchanges (CEXs).

Apart from Ripple’s sales, recent whale activity could also affect market sentiment. On July 8, WhaleAlert, a blockchain tracker, reported a large transfer of 35.35 million XRP, valued at approximately $16 million, from a significant holder to the Bitstamp exchange.

This transaction has led to speculation about potential developments involving XRP whales, particularly in the context of the ongoing SEC case resolution.

Price Impact and Market Reactions

Ripple’s regular sales of XRP typically result in a decrease in the token’s value. This trend is evident as XRP frequently experiences price declines following these sales.

In 2024, only five out of 14 days of selling saw positive price movements, highlighting the substantial impact of these sales on the market.

In the first half of 2024, XRP has recorded negative performances for four out of the six months. Ripple has sold a total of 1.676 billion XRP this year, contributing to a 3.10% increase in the token’s overall supply.

Currently, XRP is trading at $0.43, reflecting a 30% decrease year-to-date and a 17% decline since the significant sell-off observed on June 7.

Legal Battle and Market SentimentThe ongoing legal battle between Ripple and the SEC also significantly influences market sentiment.

In July 2023, a judge ruled that Ripple’s systematic sales of XRP did not breach the Howey Test but found the company guilty of selling unregistered securities to institutional investors.

The pending decision will dictate the penalty, with the SEC advocating for a $2 billion fine and a ban on future institutional sales, while Ripple is proposing a $10 million penalty.

Pro-crypto lawyer Fred Rispoli has speculated that the court's final decision could come as soon as July 13 or by the end of the month. Rispoli predicts a penalty of less than $25 million with no disgorgement and suggests that the SEC might pursue further action if it believes Ripple continued violating securities laws post-complaint.

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