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Ripple, a leading blockchain-based digital payment network, has unlocked a staggering one billion XRP from escrow within the past 24 hours. This significant movement of XRP has caught the attention of the community, especially considering the massive volume and its potential implications for the XRP price.
Whale Alert, a well-known blockchain tracking service, was quick to notify the public about these large transactions. The first alert revealed that 500 million XRP, worth around $238.5 million, have been unlocked from escrow on an unknown wallet.
Shortly after, Whale Alert tweeted again to reveal that 100 million XRP, estimated to be $47.6 million, have been unlocked from escrow. Similarly, the final alert in this series of transactions was of 400 million XRP, worth around $190.7 million.
Market reaction and XRP price
Ripple’s escrow system is designed to provide predictability and transparency to the supply of XRP. The company placed 55 billion XRP (55% of the total supply) into a series of escrows back in 2017. These escrows are set to release one billion XRP each month over 55 months.
The idea behind this mechanism is to mitigate concerns about the XRP supply flooding the market and causing price volatility. Each month, Ripple decides whether to sell or retain the unlocked XRP based on market conditions and the company’s operational needs. Any unused portion is returned to the escrow account.
Despite the enormous volume of XRP being unlocked, the price of XRP has shown stability. Currently, XRP is trading at $0.4816, reflecting a modest increase of 0.16% in the last 24 hours. The trading volume, however, has surged significantly, jumping 40.43% to $843.03 million.
This spike in trading volume suggests increased market activity, possibly in response to the large release of XRP. While the immediate price impact has been minimal, sustained or increased selling pressure from this unlocked XRP could eventually impact the market.
Tomiwabold Olajide
Gamza Khanzadaev
Vladislav Sopov
Dan Burgin