Ripple’s recent transfer of 200 million XRP has caught the attention of the market. According to Whale Alert, the transfer, worth over $100 million, occurred between two unknown addresses. The transaction is significant due to its size and the mystery surrounding the parties involved.
Analyzing the on-chain data from Bithomp, it was discovered that 100 XRP was previously transferred to the recipient address “rJqiMb94” in 2021. This address already held an impressive amount of 7.32 million XRP before receiving the additional 200 million tokens. Given the size of the wallet and its connection to Ripple, it is reasonable to assume that the address belongs to the crypto firm itself.
On the other hand, the sender address, although holding 70 million XRP, is relatively new and was activated by an unidentified transfer. Currently, it holds 5.12 million tokens. It is likely that this transfer is part of Ripple’s movement of funds between its wallets. This behavior aligns with the first day of the month, when Ripple releases some of its XRP reserves from escrow accounts into the market.
Ripple employs an escrow mechanism for its XRP system, storing XRP in a series of large escrow accounts. Each month, one billion XRP is released from an escrow account, with any excess tokens being refunded by the end of the month. This strategy helps manage the supply of XRP, ensuring a controlled release of tokens and maintaining stable prices.
Currently, CoinMarketCap reports that XRP is priced at $0.4819, showing a 2.09% increase in the last 24 hours. Over the past 7 days, it has gained 1.44%, indicating a positive trend.
In a previous report, CNF highlighted Ripple President Monica Long’s emphasis on the importance of regulatory clarity and significant trading volume for XRP. These factors contribute to the possibility of a future XRP ETF.
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