Ripple's XRP Holdings Dip Below 45%: A Turning Point for the Crypto Giant?

May 18, 2024 at 11:41 AM GST 2 mins read Crypto Live News

Ripple’s XRP holdings dropped below 45 billion tokens for the first time in Q1 2024, now at 44.94 billion.
Ripple sold 841.5 million XRP worth $440.6 million in Q1 2024, a 16% decrease from the previous quarter.
Ripple’s spendable XRP balance decreased by 237 million, now holding 4.84 billion XRP as of March 31, 2024.

The American financial technology startup Ripple has announced a substantial decline in its XRP holdings. The company reached a turning point in its asset management strategy when its XRP balance dropped below 45 billion tokens, according to its most recent quarterly report.

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The Q1 2024 XRP Markets Report is out now: https://t.co/rd2kKQMNvR

Notable market developments in Q1 include:
🇺🇸 Continued U.S. demand for BTC Spot ETFs
📶 CEX & DEX volume growth
⚖️ Key regulatory & legal updates
🔗 Technical blockchain upgrades including AMM on the #XRPLedger
— Ripple (@Ripple) May 17, 2024

In 2024’s first quarter, Ripple sold off 841.5 million XRP, or $440.6 million at the current price per unit. This is a 16% drop in XRP sales over the prior quarter. The company’s plan to cut its XRP holdings has prompted concerns among market participants about the impact on XRP’s performance.

Chief Technology Officer of Ripple, David Schwartz, has denied that XRP’s poor performance is caused by the company’s sales, though. He contends that compared to other assets, like Solana, which have done well despite similar techniques, Ripple’s inflation rate is lower.

Furthermore, Schwartz adds that Ripple has no choice except to lower its XRP holdings. He criticizes suggestions of burning tokens, claiming that it would have no good impact on price, citing the Stellar example.

Of all its holdings, Ripple has 4.84 billion XRP as spendable balance as of March 31, 2024. This shows a 237 million XRP drop over the last quarter. In order to maximize its asset management approach, the corporation is responding to market dynamics by reducing its XRP holdings.

Moving forward, Ripple’s activities will continue to impact XRP’s direction and influence market sentiment. As the business implements its asset management approach, stakeholders will closely monitor the impact on XRP’s performance and the overall cryptocurrency market.

Finally, the choice by Ripple to sell off its XRP holdings highlights how the cryptocurrency market is changing. With its strategic measures, the business intends to position XRP for long-term growth while addressing market concerns.