Two XRP transactions performed by the American blockchain payments company Ripple Labs Inc. have sparked a variety of speculations about what they may be used for. One 75,000,000 XRP transaction worth $36,921,543 was included in the two transfers overnight, according to data insights from Whale Alert.
While this initial payment was sent to an unidentified wallet, a second transfer worth 30,000,000 XRP and worth $14,949,851 was sent to the Bitstamp exchange. Two options, including the ability to sell or serve as liquidity for the On-Demand Liquidity (ODL) platform in which Bitstamp is a partner, have been related to this drive towards Bitstamp.
Just prior to publication, a significant amount of 409,776,402 XRP, worth $201,627,816 was transferred from Bitvavo to an unidentified wallet. Even though the industry is unsure of their true objectives, these XRP in motion are causing sell-off worries.
At the time of writing, the price of XRP is fixed at $0.492, down 0.32% over the last 24 hours, as was to be expected. While the decline was caused by the false information surrounding the approval of BlackRock’s spot Bitcoin ETF, the recent XRP price swings have also done their part to sour investor mood.
XRP revival
The possibility of a sell-off is still slim since some of the earlier XRP transactions from Ripple Labs are generally known, and because of the complicated legal issues surrounding the virtual currency. This can significantly ease concerns and stabilise the asset’s price going ahead.
Another encouraging factor to keep an eye on in the effort to keep the price of the currency stable is the ongoing whale activity surrounding XRP. It is important to remember that Ripple normally releases XRP from escrow once each month, and being one of the biggest holders of the coin, occasionally corresponding moves may be seen.
This implies that its behaviour may be related to its commercial activities and not just a dump.
