On Jan. 1, 2024, Ripple, the leader in corporate crypto solutions, executed its planned release of 1 billion XRP from its escrow accounts. This well-established practice, occurring every first of the month, saw three distinct transactions unfold, injecting a measured dose of liquidity into the cryptocurrency market.
The initial tranche, a sizable 100 million XRP valued at approximately $61.14 million, emerged from Ripple's secure vault. This was followed by a larger 400 million XRP contingent, estimated at $244.57 million, and finally, a substantial 500 million XRP wave, worth $305.71 million, crested onto the market.
Ripple implemented the escrow system at the end of 2017 to ensure controlled distribution and market stability for XRP. With 55 billion tokens allocated across a series of escrow accounts, each holding 1 billion of them, the controlled release is designed to span the next 42 months, potentially concluding by mid-2027.
XRP price reaction
While the initial market response saw XRP dip by approximately 2%, the reaction was short-lived. By the current moment, XRP has recovered most of its losses, closing with a marginal 0.3% decline compared to the previous day.
This resilience, coupled with Ripple's transparent and predictable release strategy, has fostered cautious optimism among investors and enthusiasts.
Presently, XRP trades at around $0.614 per token, demonstrating a steady rebound. As Ripple continues its scheduled releases, the broader cryptocurrency community remains keenly focused on market dynamics and the potential long-term impact on XRP's value.