XRP has managed to solidify its position as the third-largest cryptocurrency by market capitalization with the steady price increase it embarked upon a few days ago.
According to CoinMarketCap, on Sunday, the price of XRP hit $0.32, its highest price since mid-February 2020. However, the market made a bit retracement moments later, but the price pump is still strong. At the time of writing, XRP is trading at $0.307591, with a 6.59% price increase based on 24 hours estimation.
Jed McCaleb Increases XRP Dumps By 266% in 2020
However, in order to control his sell-off rate, he went into an agreement with Ripple. This agreement limited the sum of XRP he could sell per year to avoid a devastating price dump. The agreement was revised in 2016.
According to McCaleb, the revised agreement with Ripple “allows for significant increases in my selling ability as volume increases, something that was not possible before.”
So, trading volume has increased again, giving the XRP whale the means to increase his selling rate.
In an update on 3rd August, Whale Alert, the tracker of large cryptocurrency transactions from and to exchanges, stated that McCaleb sold an additional 266% of XRP in 2020 compared to 2019.
According to Whale Alert, the average amount of XRP dumped by McCaleb on a daily basis is relatively 1.74 million worth $374,200.
How much you got paid for this FUD? Lol. It's just value Exchanging hands. XRP pump is inevitable. Secure your bags
— 6$ $SXP $5 $EOS $WRX TILL 0 $LINK DIE HARD (@nakedbeastie) August 3, 2020
Could McCaleb Selloffs Have Negative Impact on the Price of XRP?
So, the long-standing question is based on the impact his selloffs could leave on the price of XRP in the market. Going by Whale Alert’s assertion, his activity could be termed as insignificant:
Whale Alert noted, “Compared to the total trade volume per day, the amount he is selling seems insignificant”
Adding that “The real question is how much effect McCaleb has on the net amount of XRP available. Even though we do not yet have enough data to make a conclusive statement on this, we can determine that, because he is exclusively selling XRP, he is adding to the net amount available.
“It seems that the profits are being cashed out directly through Bitstamp and we found no evidence that any of it is being reinvested into the crypto market.”