Ripple, a leading cryptocurrency payment firm, has executed its routine procedure of unlocking 1 billion XRP from its escrow accounts. This move comes as the company’s escrow balance falls below the 40 billion XRP mark.
Transaction Details
In a series of three transactions, Ripple initiated the release of the XRP tokens. The first transaction involved unlocking a substantial 500 million XRP, valued at approximately $301 million.
Subsequently, another 300 million XRP coins, equivalent to $180.6 million, were released in a simultaneous transaction.
The final transaction saw the unlocking of 200 million XRP, valued at $120.4 million.
Based on the current value of XRP at around $0.61, the total worth of the unlocked 1 billion tokens is estimated at $610 million.
Related article: XRP Army Panics as Binance Suspends XRP Withdrawals
XRP Market Cap Increases by 5B; Does This Affect the Market?
Despite releasing 1 billion coins, XRP’s market performance remains robust. According to CoinMarketCap data, over the past 24 hours, XRP has demonstrated a 1.5% increase, maintaining its position as the fifth-largest cryptocurrency globally with a valuation of $32.8 billion. XRP’s market cap has surged by $5 billion since October 1, 2023.
Ripple’s Escrow System
Ripple introduced the escrow system in December 2017 to stabilize the XRP market. The company locked 55 billion XRP in various escrow accounts, planning to release 1 billion monthly over 55 months. However, it’s worth noting that Ripple often locks back a significant portion of XRP shortly after the scheduled release.
Related also: Ripple Meets SEC Today: What will be Discussed?
Current Escrow Holdings
Following the latest token unlock, Ripple’s escrow holdings now stand at 39.9 billion XRP. On November 1, 2023, the company had 40.1 billion XRP in escrow, but after releasing 1 billion tokens, it locked back 800 million XRP, bringing the total escrow holdings to 40.9 billion XRP.
Despite Ripple’s intentions to stabilize the XRP market, critics, including Jerry Hall, have voiced concerns. Hall argues that Ripple benefits from monthly XRP sales to finance its business, leaving XRP holders without reciprocal support. Critics contend that these regular market sales suppress XRP’s price.
