Ripple’s XRP Ledger explorer data from Bithomp shows that San Francisco-based blockchain payment startup Ripple has released 1 billion XRP coins from two escrow wallets.
XRP has decreased 2.66 percent during the last 24 hours, as per information from CoinMarketCap. On significant spot markets, the token is now trading at $0.3795.
55 percent of the total supply of XRP was placed into escrows by the business back in 2017. The maximum amount of new tokens that may be put into circulation each month is 1 billion XRPs.
Ripple’s inability to gain traction might be due to bitcoin
It should be noted that rather than the routine unblocking of new tokens, XRP’s current decline is related to Bitcoin’s struggle to acquire a foothold over the $24,000 mark. The great majority of the currencies that Ripple distributes are routinely returned to its escrow.
The unlocking process, which happens on the first day of every month, is predictable, therefore its impact on the XRP token’s price is minimal at best. Contrary to popular belief, the bulk of those tokens does not oversaturate cryptocurrency exchanges.
Ripple sold XRP worth $408 million in the second quarter. The On-Demand Liquidity service’s rising popularity was mostly to blame for the surge in sales.
In other developments, XRP co-founder Jed McCaleb ultimately sold his remaining XRP coins last month, so he can no longer put more pressure on the sixth-largest cryptocurrency to sell.
According to information from CoinMarketCap, there are 48.3 billion XRP tokens presently in circulation.
XRP, the sixth-largest cryptocurrency, has been making the news quite a bit due to its continuing conflict with the Securities and Exchange Commission (SEC).
The SEC shocked everyone in the cryptocurrency industry by suing Ripple in December 2020, sparking the start of the dispute between them both. Ripple was accused of selling unauthorized securities in the form of XRP. The lawsuit is still ongoing, with no parties getting an edge over the other.