Ripple’s recent movements of XRP tokens from its escrow wallet have sparked debate within the cryptocurrency community.
Ripple transferred a large amount of XRP (around 3 billion tokens) between its affiliated wallets. This triggered concerns due to the unusual volume compared to typical monthly releases of around 1 billion XRP.
Some, like crypto commentator Marty Party, expressed concern about the sudden movement of such a large amount (5.45% of circulating supply) within a short timeframe. Others, like crypto analyst Michael Nardolillo, clarified that these were likely internal transfers and standard escrow-related activities. Some community members believe this could introduce selling pressure on XRP.
XRP’s price has often shown sensitivity to Ripple’s escrow releases, which are influenced by overall market sentiment. Despite a slight dip, XRP’s price held relatively steady at $0.51, suggesting the recent activity may not have had a major immediate impact.
Some experts worry about a potential “XRP dump” of 400 million tokens (worth $208 million) in June, which could put downward pressure on the price. XRP’s performance this year has been lackluster, with an 18% year-to-date decline (worse than most major tokens except Cardano’s ADA).
