Ripple, the blockchain-based payment company, has just released a massive 1 billion XRP tokens from its escrow account, currently valued at over $2.18 billion. This regular monthly release has caused a small but noticeable 2% drop in XRP’s price.
Let’s look at what Ripple is doing, why they’re releasing so much XRP?
As part of its regular monthly release, Ripple unlocked the tokens through three quick transactions. According to updates from Whale Alert, the first move saw 400 million XRP sent to Ripple’s own wallet.
Just minutes later, another 500 million XRP were unlocked and transferred to a different Ripple wallet. Finally, a third transaction released 100 million XRP, also ending up in one of Ripple’s wallets.
But Here’s the Catch…
Even though they unlocked 1 billion XRP, Ripple also locked 670 million XRP back into escrow this month. So only 330 million new XRP made it into the market. This careful step helps keep prices from getting out of control. Ripple has done this for years, and it’s worked well so far.
Ripple has been unlocking 1 billion XRP each month since 2017, after locking up a big stash of 55 billion XRP. This monthly routine helps Ripple cover its costs and keep things balanced.
They don’t dump all the tokens at once, which would flood the market. Instead, they sell just enough to fund operations and lock the rest back up.
After Ripple’s June release, XRP’s price fell by about 2%, landing at around $2.19. Its total market value now stands at $128 billion. At the same time, trading activity has slowed down too.
The 24-hour trading volume is nearly $2 billion, showing a drop of 18% compared to before.
Ripple escrow is a mechanism where a large portion of XRP (55 billion initially) is locked up and released systematically over time, usually 1 billion XRP monthly.
Ripple unlocks 1 billion XRP monthly since 2017 to fund its operations and maintain market balance, selling only enough to prevent oversupply.
XRP’s price dropped by about 2% to $2.19 after the June release. Its 24-hour trading volume also decreased by 18%.
Apertum has been officially designated as a key general blockchain within the Avalanche ecosystem —…
The Cardano price fell nearly 10% last night due to the liquidation of numerous long…
In 2010, Bitcoin could be mined on a laptop by anyone, anywhere. Today? That window…
The National Bank of Kazakhstan (NBK) officially launched its crypto card initiative on June 3,…
Tesla’s stock just took a beating, dropping more than 14% in a single day and…
Can Bitcoin help reduce America’s $33 trillion debt? Senator Cynthia Lummis believes it can and…
