Ripple’s sales in 2023 caused mixed feelings among members of the Ripple community, with many seeing it as bullish for the network while others seeing it as detrimental to the price movement of XRP.
What happened to Ripple sales?
Compared to 2022, Ripple sold 37% more XRP per month in 2023, another tweet This development was brought to the attention of many by Mr. Hooper, an influencer in the XRP community.
Ripple has sold 2.22 billion XRP since 2023. That’s about 315 million per month. About 50% more than 200 million in 2022. Now the crying is about to begin. But I can reassure you. It’s not the XRP Tards that bought 2.2 billion XRP and XRP outperformed anyway. “No matter how you feel,” Hooper said.
It is important to mention that Mr. Hooper initially made a mistake regarding the percentage increase in monthly sales over last year, which is 37% as opposed to the 50% he initially tweeted. However, he quickly corrected it in a follow-up tweet.
37% is still a lot though, and these numbers will undoubtedly raise eyebrows as to what is happening with Ripple and how the price of XRP will react to these sales, whether it leads to a massive rise in the price of XRP or a steady decline.
XRP trading does justice to these claims, as the number of XRPs in circulation has increased exponentially. The circulating supply of XRP was 50.334 billion at the start of the year but now stands at 52.554 billion after Ripple’s sales and monthly security issuances. This is an additional 2.2 billion XRP that has been put into circulation since January and an increase of 4.4%, and this year is far from over.
In 2021, Ripple sold 2 billion XRPs, which equates to 166 million XRPs sold on an average monthly basis. In 2022, it sold 2.75 billion XRP, with an average of 230 million tokens sold per month.
XRP holding steady above $0.7 | Source: XRPUSD on Tradingview.com
In 2023, Ripple has sold 2.22 billion XRPs since the beginning of the year, with an average of 315 million tokens sold per month since January. This proves that Ripple has significantly increased XRP sales since 2021.
What does this mean for Ripple and its community?
These numbers could be both good and bad news for XRP and its community. On the plus side, it shows that there has been more demand for the token over the years, which indicates the growth and wider adoption of the token.
This demand could come mainly from institutional investors, which could undoubtedly expand the use cases of XRP outside of the cryptocurrency space. While on the downside, having a lot of XRP in circulation without a deflation mechanism could reduce the value of the token.
At the moment, the price of XRP seems to be feeling the heat as the altcoin declined by 4.89% in the last 24 hours to trade at $0.688. However, the daily trading volume increased by 8.69%, indicating an increase in trading activity.
Featured image from Analytics Insight, chart from Tradingview.com