A recent surge of XRP transfers has raised attention in the crypto community after nearly 900 million XRP coins were moved in two transactions within a single hour.
- Patricia ArquetteOriginal
- 2024-11-02 18:36:35587browse
According to blockchain tracker Whale Alert, these transactions were conducted by Ripple. As XRP's price also saw a modest increase over the same period
Two large XRP transactions, totaling nearly 900 million coins, were recently observed by blockchain tracker Whale Alert. These transactions were carried out by Ripple, the company behind XRP.
As XRP's price also saw a modest increase during the same period, the market evaluated the implications of such large movements.
According to Whale Alert, two substantial XRP transfers were recorded on Saturday. The first transaction involved the movement of 500 million XRP coins from an escrow XRP wallet. This large transfer was valued at $254.7 million at the time of the transaction.
Meanwhile, the second major XRP transaction, also initiated by Ripple, saw 400 million XRP coins being shifted from an escrow XRP wallet. This transaction was valued at $203.7 million.
These large XRP transactions are part of Ripple's regular practice of releasing XRP from escrow on the first day of each month. Over the past couple of years, the company has been releasing one billion XRP coins from escrow to enhance XRP liquidity.
Following these large XRP transfers, another significant transaction was observed by Whale Alert. This transaction entailed the transfer of 31.1 million XRP coins to Bitso, a major Latin American crypto exchange.
Known for its partnership with Ripple, Bitso plays a crucial role in supporting Ripple Payments, previously known as On-Demand Liquidity (ODL). This service enables faster cross-border payments, and the latest transaction likely contributes to maintaining XRP liquidity in key markets.
The large XRP transfers, totaling around 871.1 million coins, were valued at approximately $458.4 million at the time of the transactions.
Meanwhile, XRP's price experienced a 3% increase amid these transactions, reaching $0.518 per coin. The seventh-largest cryptocurrency saw two notable hourly gains of 1.5% each, briefly increasing its market cap to $29.75 billion.
While Ripple's large monthly releases can prompt short-term volatility, the native token's price remained relatively stable due to Ripple's controlled escrow strategy.
This strategy ensures that about 80% of each monthly XRP release returns to escrow for future cycles, while the remaining 20% is available in the market. This controlled flow of XRP into circulation appears to sustain demand without causing significant destabilization.
Moreover, Ripple's collaboration with exchanges like Bitso, which integrates Ripple Payments to facilitate faster cross-border payments, reflects an ongoing effort to support XRP's role in global financial services.
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