In a recent strategic move, Ripple, a major player in cryptocurrency payments, has released another 1 billion XRP tokens from its escrow accounts. This routine action has significantly lowered Ripple’s escrow balance to below 40 billion XRP, as confirmed by the crypto tracking service, Whale Alert.
Breaking down the transaction, valued at around $610 million, Ripple carried out this release through three separate transactions. Releasing 1 billion XRP tokens monthly is a key part of Ripple’s strategy to keep the XRP market stable, a plan set in motion back in December 2017.
Contrary to expectations, data from CoinGecko shows that despite releasing 1 billion coins monthly, XRP’s market cap has grown by $5 billion since October 1, 2023. Currently holding the fifth position in the global crypto ranking, XRP boasts a valuation of $32.8 billion.
Notably, XRP concluded Q3 2023 with a market cap of $27.8 billion.
Read More: XRP’s 5-Year Journey in Review: How Does it Compare to Other Cryptocurrencies?
Ripple introduced its escrow system in December 2017 to stabilize the XRP market. Initially locking away 55 billion XRP with a plan to release 1 billion monthly over 55 months, Ripple took a unique turn by locking back a substantial amount after previous releases. As of now, Ripple holds 39.9 billion XRP in its escrow accounts.
Not without controversy, Ripple has faced criticism for allegedly suppressing XRP’s price through its monthly market sales. Jerry Hall, a vocal critic, argues that Ripple benefits from these sales to fund its operations without adequately reciprocating support from XRP holders.
In conclusion, Ripple’s recent release of 1 billion XRP tokens has brought its escrow balance below the 40 billion XRP mark. While this move wasn’t surprising given its routine nature, the big question remains—how will Ripple strategically use these newly unlocked tokens? Will they be locked back, or will they hit the open market?
The unfolding chapters of Ripple’s crypto story promises intrigue.
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