In April, the price of XRP jumped from $0.174 to just under $0.23 along with the rest of the market after bitcoin’s price rallied. The digital asset ended the month with about 24% gains.
However, XRP still lost the third position, yet again, to the most popular stablecoin Tether (USDT) whose market cap has surpassed $8 million, over 33% in just two weeks.
Interestingly, XRP’s gains came despite Ripple co-founder Jed McCaleb selling 1.8 million XRP a day in April (about $400,000 worth of XRP) as per the report of The Crypto Associate.
“Ripple co-founder sells 54 million XRP. No one will ever sell 54 million BTC,” tweeted Urdi Wertheimer.
McCaleb made $12 million from the sale of XRP last month.
Does it really affect the price?
McCaleb received about 9 billion XRP as part of his compensation for his role at the San Francisco-based fintech startup Ripple.
The former Ripple CTO also sold 19 million of his XRP in February and the same as this time, the price of XRP spiked over 27% that month.
McCaleb, who is also the founder of the now-defunct infamous Mt. Gox and Ripple’s competitor Stellar Lumens (XLM) said earlier this year, “date shows there is no impact on the market (of his XRP sell-off) and I don’t see any reason why that will change.”
This was after a report from Whale Alert that tracks top blockchains analyzed McCaleb’s XRP sales activity as “insignificant” compared to XRP’s total trading volume per day but added that the “economic power and consequences of whales cannot be ignored.”
Whale Alert also stated at that time that at the rate McCaleb is selling his XRP, it would take him 20 years to sell all of it while acknowledging his settlement agreement with Ripple, to be expired sometime in 2020, that limited his selling activities.
A Quiet Quarter
In its first quarter of 2020 report, Ripple, the owner of more than half of XRP's total supply, revealed that it sold $1.75 million in over-the-counter but zero XRP through exchanges, the second time.
It also talked about the success of its ODL that leveraged XRP digital asset, the USD transaction value jumped by 294%.
Ripple’s partner MoneyGram that is compensated to use its digital asset however, recently divulged that Q1 was a “quiet quarter” in terms of Ripple partnership.
During the earnings call, MoneyGram chairman and CEO Alex Homes said this partnership is “transformative for both the traditional money transfer and digital asset industry,” which allows them to settle currencies in seconds.
“This initial success encourages us to expedite expanding our use of On-Demand Liquidity,” he said.
The company has a variety of new services in the pipeline that will be rolled out later this year, he added.
Although it is a “good partnership,” Holmes said Ripple continues to work on its product and how they want to target various markets.