Ripple, the leading blockchain payment provider, executed a series of high-volume XRP transfers on August 2, moving 700 million XRP, valued at more than $2 billion. The transactions were part of Ripple’s monthly process to manage the supply of XRP, which includes unlocking and re-locking tokens to ensure proper distribution.
Escrow transactions and internal repositioning
Ripple’s monthly supply management involves the unlocking of 1 billion XRP, with a portion being re-locked back into escrow. On August 2, Ripple transferred three separate batches of XRP 100 million, 500 million, and 100 million to escrow accounts, signaling its routine process. However, in addition to these transfers, Whale Alert reported two large movements of 200 million and 300 million XRP to Ripple. This suggests that Ripple may have been repositioning internal XRP holdings in preparation for its monthly release and re-locking process.
XRP’s decline amid whale outflows
Despite these significant transactions, XRP has recently faced bearish trends. The asset has seen a sharp drop, falling below the key $3 support level, largely due to significant whale outflows. On August 2, over 710 million XRP were sold, contributing to this price decline. Analysts are now predicting potential further downside for XRP, with cautionary signals arising from the large movements by major holders in the market.
Ripple’s careful management of XRP’s circulation continues amid growing concerns over the currency’s short-term performance in a fluctuating market.