Whale Alert, a prominent crypto whale tracking service, has revealed that Ripple, the blockchain-based payment protocol, recently unlocked a staggering 1 billion XRP valued at $453.74 million from its escrow account. The news of this massive token release has garnered significant attention within the cryptocurrency community.
Ripple’s Escrow Unlocking Program
According to data provided by Whale Alert, Ripple executed the unlocking of the 1 billion XRP coins through five separate transactions. The initial transaction involved the release of 100 million XRP, while the second and third transactions unlocked 400 million and 200 million XRP, respectively. Additionally, Ripple freed up another 100 million and 200 million XRP from its escrow account for the fourth and fifth transactions, respectively.
These transactions occurred on July 1, 2023, precisely at 00:00 (UTC), as indicated by data from Bithomp. However, it is noteworthy that Whale Alert only reported the event on its Twitter handle yesterday, July 2, 2023. The delay in reporting was attributed to an issue with the XRP API, which Whale Alert is actively addressing to ensure prompt and accurate updates in the future.
Ripple’s monthly token unlock program involves deliberately unlocking large volumes of XRP from its escrow account. Ripple has employed this strategy since 2017 to maintain price stability for XRP. By gradually releasing tokens in a controlled manner, XRP can prevent significant price fluctuations.
Ripple’s monthly XRP unlocks are typically announced on the first day of each new month. Despite unlocking a substantial amount of XRP, Ripple often returns a significant portion of the funds into escrow within a day or two. This practice demonstrates a commitment to balancing the market and fulfilling the demands of its On-Demand Liquidity (ODL) services. Whale Alert has not reported whether it has already locked back a portion of the recently unlocked XRP.
Impact on XRP Price
Despite the considerable token release, the market impact on XRP’s price has been relatively limited. Currently, XRP is trading at $0.480, representing a marginal decrease of 0.1% over the past 24 hours. Over the past seven days, XRP has experienced a slight decline of 0.5%.
As Ripple continues its monthly XRP unlocks, market observers will closely monitor the dynamics to assess any potential implications on XRP’s price trajectory and market sentiment.
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