Recently, Bitstamp received a significant transfer of Ripple Labs’ cryptocurrency, totaling 27.7 million XRP, or around $14.4 million.
According to Whale Alert data, the transfer came from a wallet that was not immediately identified. However, a deeper investigation by Bithomb Explorer revealed that the wallet is connected to Ripple Labs and has a transaction history going back to February 2022.
Consistent withdrawals from this wallet indicate that Ripple Labs uses it as its main financial asset management route.
Ripple Labs frequently conducts large-scale transfers of this kind, especially considering its monthly escrow releases. The monthly escrow is intended to reduce worries about large-scale, uncontrolled XRP holdings being released onto the market, which might cause price instability, and to guarantee XRP supply at all times.
One billion XRP in total are issued from escrow each month. This gives the market and Ripple itself a steady supply. Although the precise objective of these minor transactions is still unknown, there is conjecture that the coins could be intended to improve operational liquidity.
Additionally, the move hasn’t significantly affected market sentiment because XRP has performed well on the market. Over the past day, there has been a notable 83% increase in trading volume for the altcoin, accompanied by a 1% increase in its value.