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Highlights
- Ripple's unlock of 500 million XRP raises worries about price drops in the market.
- Routine strategy sees 1 billion XRP released monthly, impacting market dynamics.
- XRP prices dip amid concerns over increased supply and whale transactions.
The XRP has caught the eyes of investors today, amid a slump in its price. Notably, the crypto was on the investors’ radar today, especially after Ripple unlocked 500 million XRP from Escrow, triggering discussions over its potential impact on the XRP price.
Generally, such unlocks tend to boost the supply of the crypto in the market, which in turn impacts the prices. So, let’s take a closer look at XRP’s recent development and see how it might affect the XRP price.
Ripple Unlocks 500 Million XRP Sparking Speculations
Ripple has initiated the unlocking of 500 million XRP from escrow, a move that reverberates throughout the crypto sphere, as reported by Whale Alert, an on-chain transaction tracking platform. This release forms part of Ripple’s routine strategy, with 1 billion XRP typically freed from escrow monthly, often distributed across two or three transactions. Notably, the 1 billion release usually happens in two or three transactions, and considering that, some more transactions could be witnessed shortly.
While this surge in XRP supply may momentarily dampen prices, Ripple’s Escrow Strategy aims at sustaining market liquidity and facilitating cross-border transactions. Despite concerns over short-term price impacts, the majority of released XRP is re-escrowed, ensuring long-term stability and aligning with Ripple’s ecosystem sustainability goals amidst ongoing regulatory hurdles, notably the SEC lawsuit.
As demand from businesses, partners, and exchanges escalates, Ripple’s balancing act underscores its commitment to maintaining ecosystem integrity amid regulatory uncertainties, emphasizing its strategic vision beyond immediate market fluctuations.
Also Read: Bitcoin ETF Outflows Surge to $161 Million Ahead of FOMC
Price & Performance
The XRP price, along with the broader cryptocurrency market witnessed a downturn momentum today. On the other hand, the recent release from Escrow has also sparked concerns over further pressure on the crypto’s price.
Notably, an unknown whale with wallet address “r4wf7….h4Rzn” sent 30.6 million XRP, worth $15.11 million, to Bitstamp exchange. This has also sparked concerns over a potential downward pressure on the XRP price. In addition, the same XRP whale has been seen transferring massive amounts of XRP recently.
As of writing, the XRP price was down 2.74% to $0.4995, while its trading volume rose 31.66% to $1.37 billion. Notably, the crypto has touched a high of $0.5139 and a low of $0.4905 in the last 24 hours, reflecting the highly volatile scenario in the market.
Also Read: Bitcoin (BTC) Price Relief Rally Ahead As ‘Buy The Dip’ Calls Surge
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