Over the last two years, Ripple has witnessed a steady increase in XRP sales. This year, the financial technology giant has been selling 37% more XRP per month compared to 2022. This rise in sales has sparked both optimistic outlooks and apprehensions within the community.
Notably, Mr. Huber, a well-known influential figure in the XRP community, was the first to bring attention to this development in a recent tweet.
2.22B XRP Has Been Sold by Ripple This Year Alone
He accurately pointed out that Ripple has sold 2.22 billion XRP over the last seven months of this year, averaging around 315 million XRP sold per month since January. A closer examination of XRP’s circulating supply confirms these findings.
At the beginning of this year, XRP’s circulating supply was 50.334 billion. However, due to the regular monthly escrow releases and XRP sales, this figure has increased to 52.554 billion, marking a 4.4% increase in circulating supply this year, equivalent to an additional 2.22 billion tokens.
Related article: Ripple: Whales Amass Over $74 Million XRP; Reaching 11 Weeks High
Comparatively, last year’s figures were significantly lower, with Ripple selling only 2.75 billion XRP throughout the entire 2022, averaging around 230 million XRP sold per month during that year.
The monthly average XRP sales for last year were higher than those in 2021, even though they were still lower than this year’s sales. In 2021, Ripple sold only 2 billion XRP, resulting in an average of 166 million XRP per month. This trend indicates that the company has been progressively increasing its XRP sales over the years.
Is This Detrimental to The XRP Community?
The recent disclosure has triggered a range of responses within the XRP community. The diverse sentiments arise from the understanding that increased XRP sales could impact the market, while also indicating a growing demand for XRP among institutional investors.
Ripple typically releases 1 billion XRP from escrow every month, but any excess amount is promptly locked back in escrow after necessary sales. In June, Ripple locked 900 million XRP back into the escrow wallets shortly after releasing 1 billion XRP, with 100 million tokens sold.
The quantity of XRP sold per month is influenced by institutional demand for the asset. Higher demand leads to increased XRP sales. Mr. Huber emphasized that these increased sales are not directed to “XRP tards,” suggesting they are not solely benefiting a specific group within the community.
On the other hand, certain XRP proponents have expressed concerns about the rising monthly sell rate. They highlight that as the sales increase, there could be a greater impact on the distribution of XRP in the market.
