XRP Sell-off Alert: Ripple Gears Up for Massive February Unload

Ripple currently holds approximately 39.9 billion XRP in escrows, which are not included in the token’s circulating supply. On February 1, Ripple released 1 billion XRP, valued at $500 million, retaining 20% of the total.

Every month, Ripple unlocks an additional 1 billion tokens. Typically, the company only keeps a portion of it in its treasury, often selling the remainder on the market. Finbold has been monitoring these releases, identifying trends that impact the asset’s long-term value.

In February, Ripple retained 200 million XRP, consistent with previous months. This amount is now valued at approximately $100 million, with each token priced at $0.50 at the time of writing.

Notably, the company prepared for this month’s selling activity by transferring the 200 million XRP from ‘Ripple (22)’ to ‘Ripple (1)’. Both accounts are controlled by Ripple, with the former serving as the unlocked escrow address and the latter utilized as its liquid treasury.

Ripple’s XRP Escrow Activity for February’s Sell-off

Similar to previous months, escrows were finalized within the ‘Ripple (22)’ and ‘Ripple (23)’ accounts.

‘Ripple (22)’ unlocked 500 million XRP on February 1, sending 200 million to ‘Ripple (1)’ and 300 million to ‘Ripple (10)’. Interestingly, ‘Ripple (10)’ is currently used to re-lock XRP in new escrows, with the 300 million set to be released on July 1, 2027.

Subsequently, ‘Ripple (23)’ transferred the unlocked 500 million to ‘Ripple (11)’, which is also fully locked in an escrow until June 1, 2027.

However, both ‘Ripple (22)’ and ‘Ripple (23)’ still hold 1 billion XRP tokens for escrows that will end next month – on March 1, 2024. After these unlocks, attention is expected to shift to ‘Ripple (10)’ and ‘Ripple (11)’ in anticipation of further sales.

It’s crucial to note that Ripple typically liquidates its holdings strategically, with these sell-offs representing a significant portion of the token’s 24-hour trading volume, capable of influencing short-term price movements.

Recently, Ripple’s Co-founder and Executive Chairman, Chris Larsen, lost $112 million worth of XRP due to a hack. This event negatively impacted the token’s price, as investors anticipated a similar sell-off to that of this month’s reserves.