Ripple kept 200 million XRP liquid in its escrow system after unlocking 1 billion tokens every month. So far, as of December 13, the largest XRP Ledger (XRP) holders have spent 120 million ($73.8 million) of their total holdings during the month.
It is noteworthy that these unlocks have been occurring since 2017, as Ripple purchased 80% of all XRP tokens created in 2012. After each month is unlocked, the company will sell any of the available tokens and add them to the circulating supply.
This will lead to XRP supply inflation, which will directly impact the price forecast of the digital asset. Essentially, this inflation primarily funds Ripple’s efforts and profits. Finbold established a partially recurring on-chain spending model in December to cover monthly sales starting in September.
Tracking Ripple’s XRP Traces on Chain
Interestingly, spending to “Ripple (1)< a i=4>”, the company’s crypto wallet address, resulted in two payments of 60 million XRP each to “rP4X2…sKxv3”. One occurred on December 6 and the other occurred on December 12.
This is the address where Ripple payments have previously been received, indicating a strong connection to the company. Similarly, all of the addresses listed below were discovered under similar circumstances in recent months. However, the address owner will distribute the transfer amount over several smaller transactions, unlike before.
Some went back and forth to other addresses, increasing traceability. We tracked the exact amount until we reached “rhWt2…E32hk” and as of this writing the total is 54,075,000. An unknown amount was then transferred to a regular address “r4wf7…h4Rzn” before Ripple’s XRP was deposited into the cryptocurrency. to change.
Eventually, an unknown amount reached previously used exchanges such as Bitstamp, Bitso, Independent Reserves and BTC Market.
Deposits were also made in a series of smaller transactions that continued from early December. What is certain is that the increased selling pressure of newly introduced tokens is impacting the order book and XRP price. Investors need to be aware of Ripple’s costs and consider the impact of supply inflation on their assets.
Specifically, XRP will trade at $2.39 per token once it reaches its all-time high market cap of $128.498 billion. Considering similar demand, there was a loss of $1.45 (37.7%) from the previous price of $3.84 in 2018.
