Blockchain company Ripple moved 700 million XRP, valued at over $2 billion, on August 2 through a series of high-volume escrow transactions.
The transfers occurred in three tranches, including 100 million XRP, 500 million XRP, and another 100 million XRP. Each was subsequently re-locked into escrow, according to on-chain data shared by blockchain tracker Whale Alert.
These movements align with Ripple’s long-standing strategy to manage XRP’s circulating supply and form part of its broader monthly 1 billion XRP unlock process.
Before the escrow actions, Whale Alert also flagged two separate transfers, 200 million and 300 million XRP, from unidentified wallets to Ripple, indicating internal repositioning likely tied to the monthly release mechanism.
Ripple’s escrow system unlocks 1 billion XRP each month, typically re-locking between 700 million and 800 million XRP to manage supply. The 700 million XRP re-locked on August 2 suggests that around 300 million XRP was retained for potential use or distribution.
Although Ripple maintains that its supply management minimizes market disruption, the consistent release of hundreds of millions of XRP outside escrow continues to raise concerns about short-term sell pressure.
Interestingly, XRP is already showing signs of bearish sentiment, with the token plunging sharply in the past 24 hours, mirroring broader market weakness. The asset has lost the critical $3 support zone, and analysts are warning of further downside amid large whale outflows.
In line with this, on-chain data shared by Ali Martinez in an August 2 X post indicated that whales offloaded more than 710 million XRP in the past 24 hours.
The spike in whale activity has reignited fears of short-term volatility, as such sell-offs often precede price drops.
By press time, XRP was trading at $2.78, down over 7% in the last 24 hours and 13% for the week.
Beyond broader market trends, XRP’s plunge also follows reports that Ripple CEO Brad Garlinghouse sold $200 million in XRP over 10 days near the $3.84 peak. The move echoes his $600 million in sales during the 2017-2020 SEC lawsuit.
Meanwhile, the SEC has delayed decisions on Grayscale and Bitwise XRP ETF applications until at least September 2025, further dampening hopes for near-term institutional adoption.
