- Ripple’s monthly sale of XRP to fund its operations totals $200 million. This has brought criticisms from the community, who claim that the token’s value is being suppressed.
- Mickle, a specialist in Ripple’s XRP currency, argues the market is so liquid that it has a very minimal effect on these transactions. Mickle emphasizes that Ripple’s XRP investments are purchased by strategic and institutional investors.
Ripple unblocks $1 billion in its native crypto, XRP every month. Ripple locked up 80% (i.e. Ripple has locked 80% (800 million) of its XRP tokens in escrow. The company periodically releases 200 million to finance its operations.
With the periodic sales, Ripple has been criticized by some community members for keeping the XRP prices suppressed. Good Morning Crypto created a recent poll to represent the sentiment of community members. The poll found that nearly 68% out of 2000 total voters were unhappy with Ripple’s XRP periodic sales, claiming it hinders price growth.
Vote Here: Is the $XRP Ripple’s sales contributing to the price of XRP being suppressed? 🤔💭
— Good Morning Crypto (@AbsGMCrypto) January 8, 2024
Mickle, a Ripple specialist, provided a plausible reason for these claims. Experts highlighted numerous factors that indicate the minimal impact Ripple’s sales have on XRP. Mickle said that Ripple manages their sales strategically to avoid flooding the market.
He noted that Ripple sales of XRP make up a very small portion of 24 hour trading volume for the token, minimizing its impact. Mickle stated that XRP is a highly liquid market with a large trading volume. Ripple’s sales are insignificant compared to this.
Mickle also identified strategic and institutional investors as being the main buyers of Ripple XRP. The strategy promotes benefits over the long term, including increased utility and adoption, that outweigh any short-term fluctuations in price.
XRP price is affected by Bitcoin performance
Mickle cites historical data in order to prove that Bitcoin’s performance is more important than Ripple’s sales. Like other altcoins XRP’s price is closely correlated to BTC. XRP can decouple from Bitcoin at any time, but it happened to Crypto News Flash last week. report. As at the time of publication, the price of XRP is up 8.38% and has reached the important resistance level of $0.60.
Data from the XRP Ledger’s on-chain shows that it has seen a remarkable increase in recent months. The total number of interacting addresses, as well as the new addresses have risen to the highest level since March 2024. The XRP Ledger saw 1,721 XRP wallets created in a day on Thursday. This is the most since March 30. 47,363 addresses have interacted with the XRP Network, the most since March 9. The surge in activity shows the increasing interest and involvement with the XRP eco-system. CNF reports that whales have been active around XRP. update.
XRP Ledger sees a large number of interactions on its network, both in terms of the new addresses and addresses that have been created. These are their highest levels ever since March. pic.twitter.com/AIeWzwannc
— Santiment (@santimentfeed) July 18, 2024
Recently, the Ripple SEC Case has taken on new developments. Recently, the Ripple case vs. SEC has taken a new turn. updated CNF reported that The SEC cancelled an earlier scheduled closed-door session where they were to have discussed key cryptocurrency topics, such as the upcoming settlement with Ripple.
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Source: www.crypto-news-flash.com
