November has arrived, and Ripple is stirring the market as it prepares for what could be its largest monthly XRP sale in seven years. Ripple, the lead developer of XRP Ledger (XRP) and its largest investor, has set aside 470 million XRP for sale, valued at approximately $240 million.
Since 2017, Ripple has been unlocking 1 billion XRP each month, setting aside a portion—usually 200 million XRP—for sale. In November, Ripple unlocked its usual 1 billion XRP, but this time, it reserved more than double the usual amount.
This Month’s Unlocks and Ripple’s Unprecedented Move
This month’s unlocks were completed in the Ripple (24) and Ripple (25) accounts, releasing 500 million XRP each as usual. The Ripple (25) account locked its entire amount for re-deposit until 2028 in the Ripple (12) and Ripple (13) accounts, as is customary.
However, Ripple (24) only re-locked 30 million XRP in Ripple (12) and transferred 470 million XRP to Ripple (1), the account historically used for monthly sales. This unexpected move has raised concerns among investors, as a sale of this magnitude could significantly impact XRP’s price, potentially affecting XRP investors.
Ripple’s History of Unlocks and Large XRP Sales
Ripple’s largest sale to date occurred in June when it reserved 200 million XRP and added another 200 million from Ripple’s dormant account (35), according to Finbold reports. This massive and unprecedented sale concluded on June 20, with a total of 400 million XRP sold.
Following that sale, the price of XRP dropped by nearly 20% between June 1 and July 7, highlighting the financial impact of such large-scale selling. No record of such a large release had been seen since 2017 when Ripple implemented its trust system to increase transparency.
Currently, XRP is trading at $0.511, marking an 18.70% loss for the year. Ripple has sold 2.576 billion XRP so far in 2024, with the largest sales recorded in June (400 million), September (350 million), and July (300 million).
What’s Next for XRP as Ripple Could Sell Over 470 Million Tokens?
In previous months, Ripple had reserved only the usual 200 million XRP from its monthly unlocks. Additional sales pressure typically came from inactive accounts during the month, unlike the higher amount seen in November.
This raises the possibility that Ripple could add even more selling pressure to the already record 470 million XRP. This increase in activity comes just days before the U.S. presidential election, as Ripple co-founder Chris Larsen disclosed a $10 million donation to Kamala Harris’s campaign, made after recent sales.
“It’s time for Democrats to take a new approach to technology innovation, including cryptocurrencies. I believe Kamala Harris will ensure that American technology leads globally, which is why I’m donating $10 million USD in XRP in support,” stated Chris Larsen.
Ripple has not disclosed specific details about these recent sales but has outlined its sales model on several occasions. According to sources, Ripple uses an on-demand liquidity (ODL) model for its XRP sales, selling at market price to willing customers.
Moreover, the cryptocurrency community anticipates that the election results could have a significant impact on the market. XRP investors and traders should closely monitor Ripple’s next moves, as these may depend on the election’s outcome in the coming days.
