Ripple Releases One Billion XRP from Escrow Account in the Last 24 Hours
Ripple, a leading digital payment network leveraging blockchain technology, has released one billion XRP from its escrow account in the past 24 hours. This significant movement of XRP has drawn the attention of the community, particularly given the substantial volume and its potential impact on XRP’s price.
Notably, 500 million XRP, valued at approximately $238.5 million, were released from the escrow account to an unknown wallet. The well-known blockchain tracking service Whale Alert promptly notified the public of these massive transactions. It was revealed that 100 million XRP, worth around $47.6 million, were also released from the escrow. Similarly, another transaction in this series involved 400 million XRP, valued at about $190.7 million.
Market Reaction and XRP Price:
Ripple’s escrow system is designed to provide predictability and transparency regarding the supply of XRP. In 2017, the company placed 55 billion XRP (55% of the total supply) into a series of escrows, set to release one billion XRP each month over 55 months. Ripple decides each month whether to sell or retain the released XRP based on market conditions and the company’s operational needs. Any unused portion is returned to the escrow account.
The idea behind this mechanism is to alleviate concerns about flooding the market with XRP and causing price volatility. Despite the release of one billion XRP, XRP’s price has shown stability. Currently, XRP is trading at $0.4816, reflecting a modest increase of 0.16% in the last 24 hours. However, trading volume has surged significantly, jumping by 40.43% to $843.03 million.
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This increase in trading volume indicates heightened market activity, possibly in response to the large release of XRP. While the immediate impact on the price was minimal, continued or increased selling pressure from the released XRP may eventually affect the market.
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