Blockchain technology firm Ripple engaged in a series of XRP transfers on June 1st, 2024, which has led to speculation about a potential increase in XRP sales this month. While Ripple routinely unlocks XRP from escrow each month, the movements observed on June 1st deviated from the usual pattern.
On June 1st, Ripple followed its standard procedure by unlocking a total of 1 billion XRP from escrow through two separate transactions of 500 million XRP each. These transactions originated from the designated escrow wallets, “Ripple 24” and “Ripple 25.” Following the standard protocol, Ripple then locked 800 million XRP back into escrow using wallets “Ripple 12” and “Ripple 13.”
Read Also: Ripple Moved Millions of XRP
What sparked speculation was the transfer activity that preceded the standard escrow operations. In the minutes leading up to the official escrow unlocks Ripple transferred a total of 1 billion XRP between its internal wallets. This movement involved three separate transactions:
“200 million XRP transferred from “Ripple 24” to “Ripple 1“, 300 million XRP transferred from “Ripple 24” to “Ripple 13” (later locked in escrow), 500 million XRP transferred from “Ripple 25” to “Ripple 12” (later locked in escrow).”
The reasons behind these preliminary transfers are currently unknown. However, it is important to note that this activity did not alter the overall amount of XRP unlocked from escrow or placed back into escrow.
The most significant point of deviation from past practices is the current balance in Ripple’s “Ripple 1” spendable wallet. This wallet now holds an additional 200 million XRP after receiving a transfer from the dormant wallet “Ripple 35.” In May, Ripple followed the standard escrow unlock process and sold off 200 million XRP from “Ripple 1” in two separate transactions.
Given this prior action and the current surplus in “Ripple 1,” analysts expect Ripple to sell all or a significant portion of the 400 million XRP currently held in this wallet.
Read Also: 800 Million XRP Returned To Escrow As Ripple Confirms Number of Months Left For Escrow Releases
While the reasons behind these recent transactions remain unclear, the situation highlights the importance of transparency in the cryptocurrency industry. Increased communication from Ripple regarding its XRP management strategies would be beneficial in mitigating market uncertainty.
It is important to monitor the activity in “Ripple 1” wallet in the coming weeks to determine if Ripple decides to sell the remaining 400 XRP. Further announcements from Ripple or continued analysis of on-chain transactions may provide additional clarity on the company’s plans for XRP sales in June.
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