XRP Price Drops 3% as Ripple Unlocks 1 Billion Tokens from Escrow
- Ripple released 1 billion XRP tokens, causing a 2% drop in the cryptocurrency’s price and raising community concerns.
- The release is part of Ripple’s monthly strategy to manage supply, but its effectiveness on XRP’s value is being questioned.
- XRP’s price and trading volume dropped significantly following the release, reflecting reduced investor activity.
Ripple(XRP), one of the companies in the blockchain arena, transferred 1 billion XRP tokens kept in their escrow wallet. This regulation of the number of socks in the turnover brought down the price of XRP by 3%. However, the estimate of such measures leaves much to be desired.
Read CRYPTONEWSLAND on google newsSuch release is one component of Ripple’s ongoing scheme of managing the market supply of XRP. Nevertheless, the community cast doubts concerning the effectiveness of this strategy in relation to the coin’s value. The XRP price was stuck between $0.5 and $0.6 for a long time.
Whale Alert Spots Transactions
Whale Alert, a prominent tracker of large cryptocurrency transactions, first reported the transaction. According to the tracker, Ripple released the 1 billion XRP in three transactions. The first transaction moved 500 million XRP, valued at $280 million, followed by 300 million XRP ($167.9 million) and 200 million XRP ($111.9 million), bringing the total value to over $560 million.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (280,008,999 USD) unlocked from escrow at unknown wallet https://t.co/ogYZ1wf3T4
— Whale Alert (@whale_alert) September 1, 2024
Following the release, some community members expressed concerns about the large amount of XRP entering circulation. However, Luke Prince, a well-informed community member, emphasized the importance of understanding Ripple’s strategy. He criticized those who invested in XRP without understanding the project, pointing out that this regular release is part of Ripple’s efforts to increase decentralization.
Impact on XRP Price
At the time of writing, XRP was trading at $0.549 a 3.32% drop in the past 24 hours according to CoinMarketCap data. The trading volume for XRP was around $613,664,990, which was almost 30.13% higher suggesting a spike in volume suggests a significant increase in trading activity
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