Ripple, a major crypto player and XRP holder, has been actively liquidating its monthly unlocked reserves.
The company’s recent sell-offs have piqued investors’ interest, with over $192.2 million in XRP already dumped in December alone. In this article, we will go over Ripple’s liquidation strategy and its potential implications for the XRP market.
Ripple had already sold 240 million XRP worth $148.8 million as of December 21. This was 40 million tokens more than the monthly unlocked and held amount, indicating a proactive approach to liquidating its reserves.
On December 27, 70 million more XRP were sold, bringing the total monthly sell-off to more than $192.2 million.
Notably, millions of dollars remain in Ripple’s reserves for possible future liquidation.
Ripple’s liquidation process entails transferring a portion of its monthly unlocks to its treasury reserves, referred to as the ‘Ripple (1)’ account.
The remaining XRP has been relocked into new escrows, which are expected to mature in the coming years in preparation for subsequent sell-offs.
The funds are initially directed to an unidentified owner address, ‘rP4X2…Kxv3,’ which then distributes the XRP to several anonymous addresses, all of which are likely owned by the same entity. These tokens eventually make their way to centralized exchanges for liquidation.
Despite the significant sell-offs, Ripple’s treasury reserves still contain 26.34 million XRP ($16.33 million), which could be used for future spending.
The ongoing liquidation events in December represent one of Ripple’s most significant sell-offs in 2023, leaving the crypto community speculating about future actions before the end of the year.
Ripple still holds approximately 46.10 billion XRP in escrows that are set to mature in 2027. As the largest holder of XRP, Ripple’s periodic liquidations add to selling pressure, directly influencing cryptocurrency investment values.
