Ripple Labs Inc. has made an interesting XRP transaction featuring the relocking of 800,000,000 XRP in escrow in two tranches.
According to data from Whale Alert, the biggest XRP lump sum locked in the escrow is 500,000,000 XRP valued at $308,354,921. The remaining 300,000,000 XRP locked was worth $184,222,995.
Ripple typically releases the 1 billion XRP from escrow every month. This fund is typically released to help control the XRP market’s liquidity while stabilizing the price of the coin in the long term.
Ripple Escrow Lock-up and Price Impact
In the early hours of the new year, Ripple unlocked 1 billion XRP from escrow. This initial liquidity release came in three tranches: one 500,000,000 XRP valued at $305,711,372, one 400,000,000 XRP worth $244,569,098, and 100,000,000 worth $61,142,274.
The release of this sum from escrow triggered a bearish response from the market with the XRP price dropping by 0.33% in the past 24 hours to $0.6206.
The market cap of the digital currency also slipped by 0.3% to $33,588,165,838. The trading volume, however, saw a different shift as it jumped by 20.47% to $763,801,745. This bearish slump is an impressive switch from the more than 3% drop recorded earlier.
The Ripple Escrow Account: Future Outlook
On its part, Ripple Labs has shown transparency to the escrow release program and has even taken time to reveal when the community can expect the escrow releases to end. This date comes in early 2027.
The arguments from some community members that the remaining XRP in the escrow should be burnt has also been discounted by Kristin Dack, a crypto enthusiast and a US-based real estate broker.
According to Kristin, supporting the burning from escrow or any other sources is an avenue to hurt the individual XRP holders.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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