Ripple teams up with National Bank of Georgia to explore the use of CBDCsRipple (XRP) has been a prominent name in the crypto world as it has made headlines with its innovative blockchain technology solutions. Its cross-border payments have made it a unique asset to invest in, and both retail and institutional investors have boarded its network.
Top of the recent news on the digital network is the lawsuit won against the US Security and Exchange Commission (SEC) and its recent XRP transfer.
Ripple recently proceeded with a 75 million XRP transfer that caught the eye of the entire crypto community. The strategic move sparked curiosity among crypto enthusiasts since this amounts to a close total of over $50 million. Investors are yet to explore the potential implications of these transactions.
The Ripple XRP transfer
On Tuesday, 17th of October, XRP cryptocurrency caught the eye of crypto investors and the entire crypto market over the large transfer of XRP tokens. According to Whale Alert, there were two significant transfers that totaled approximately $52 million. This amount was large enough to ignite curiosity among crypto enthusiasts.
Ripple conducted a systematic series of crypto transactions of moving large amounts of XRP. The blockchain-based payment platform moved these XRP tokens, and this, in turn, sparked speculations on the company’s intention as with crypto exchanges since Ripple is XRP’s parent company.
Two significant transactions were recorded, and the first was a 75,000,000 XRP transaction that was valued at $36.9 million to an unknown wallet. Crypto enthusiasts have been fueled with speculations that the anonymous wallet is connected to Ripple.
When a crypto company intends to sell a portion of its crypto holdings, it undergoes a strategic process. It first has to transfer the tokens to an internal wallet and then later transfer the tokens to a crypto exchange. This is what sparked the interest of the entire crypto market.
The second transaction might have confirmed the entire thought of Ripple being involved in the transactions. The following transaction recorded sending 30,000,000 XRP that was valued at $14.9 million from an unknown wallet to Bitstamp.
Bitstamp is a renowned crypto exchange platform that acts as Ripple’s On Demand Liquidity (ODL) platform. It majors in employing XRP’s swift cross-border payments.
Implications of the XRP transfer
The XRP transfer to Bitstamp suggests that the transfers were orchestrated by Ripple. Ripple used its XRP tokens to make payment solutions and strategic transfers. This highlights the company’s role in facilitating cross-border transactions.
Following the large transactions, the XRP price has shown a drop of 0.46% to $0.491 on October 17, after slight gains. Its trading volume spiked in the last 24 hours, recording an 83.4% upsurge.
This was in the midst of a bearish market where most crypto assets in the market were in red. This also applied to XRP, as it lost 1.44 % of its price in the past week.
Considering the large XRP transfers made by Ripple, the piqued interstate following the transactions might further affect its price. This is based on the market sentiments that largely affect the crypto prices. If investors are skeptical about the asset, it might have a negative impact on its value as new investors might be afraid to take a risk.
However, the large transfers could be incentives to new partners, and this might be good news for XRP. As investors join RipplNet, they would require enough liquidity to start using the XRP tokens in settlements.
Regardless, the 75 million XRP transfer resulted in XRP market price fluctuations. The immediate impact might have been small and not enough to greatly affect its price. The long-term implications, on the other hand, could be significant and affect its price on either side.
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