On June 1, 2024, significant XRP movement was reported by Whale Alert, a crypto whale tracking platform. The activity, totaling over 3 billion XRP (roughly $1.5 billion), initially sparked speculation of a major whale movement. However, a closer look reveals a more nuanced picture.
Cryptocurrency influencer Amelie (@_Crypto_Barbie) reported the whale transactions, highlighting eight transactions. These transactions included four transfers of 500 million XRP each, two transfers of 200 million XRP each, and two transfers of 300 million XRP each.
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While the initial impression might be significant whale activity, further analysis suggests otherwise. Two 500 million XRP transfers were part of Ripple’s standard monthly XRP escrow release. Additionally, one 500 million XRP transfer and one 300 million XRP transfer corresponded to Ripple’s routine monthly lock-up of 800 million XRP.
Therefore, only a portion of the reported transactions can be attributed to whale activity. The remaining transactions involved transfers between Ripple and unknown wallets, with the unknown wallets sending XRP to Ripple’s wallets. The purpose and origin of these transfers remain unclear.
What Does This Mean for XRP
It is crucial to distinguish between Ripple’s standard operations and independent whale movements. Ripple’s monthly XRP releases and lock-ups are pre-planned and predictable events, and attributing them to whale activity can lead to misinterpretations within the XRP community.
However, the other whale transactions have not had a noticeable effect on XRP’s price. While the exact nature of the remaining transactions is unknown, they could represent several possibilities. These might include:
Ripple’s Internal Token Movements: These transactions could be internal fund movements at Ripple, with the unknown wallets possibly being wallets that are not linked directly to the company.
Institutional Investor Activity: Institutional investors, such as hedge funds or investment firms, could enter or exit XRP positions.
Over-the-counter (OTC) Trades: Large XRP trades might be conducted directly between counterparties, bypassing traditional exchanges.
Ripple’s ODL Service: These transactions could also be a part of Ripple’s On-demand Liquidity (ODL) service.
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Read Also: Prominent Analyst Predicts XRP Rebound After Whales Move Millions of XRP
Without further information, it is impossible to determine the specific reasons behind these transactions. However, they highlight ongoing activity within the XRP ecosystem, and XRP’s trading volume has risen by over 26% over the past 24 hours.
It is also notable that June’s escrow release marks the first hassle-free escrow release since January, as the company has failed to meet the schedule for months, making it up with further releases later in the month.
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