Ripple Unlocks 1 Billion XRP Tokens, Sparks Speculation in Crypto Market - Latest cryptocurrency news

Ripple Unlocks 1 Billion XRP Tokens, Sparks Speculation in Crypto Market

Cryptocurrency giant Ripple has unlocked its monthly token lock and released 1 billion XRP, leading to new speculations in the crypto world. This routine practice, noticed by Whale Alert, a whale tracking platform, seems to demonstrate Ripple’s commitment to market stability.

Ripple announced the unlocking of 1 billion XRP tokens through three separate transactions. In the first transaction, approximately 500 million XRP worth around $301 million was released. Following that, an additional 300 million XRP worth $180.6 million was put into circulation. Lastly, 200 million XRP worth $120.4 million was withdrawn from Ripple’s escrow account. The total value of the released tokens was calculated to be around $613 million.

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These unlocking events by Ripple are happening under the escrow system introduced in December 2017. Initially, the company had locked 55 billion XRP in escrow accounts. They had announced a plan to release 1 billion XRP every month for 55 months to stabilize the XRP market.

However, Ripple has taken additional steps to ensure market stability. Shortly after the expected release of the 1 billion coins into the market, a significant amount of XRP was re-locked. At the time of writing, Ripple had not reinvested a portion of the newly released 1 billion cryptocurrency into its escrow account.

Following the unlocking transaction on December 1st, Ripple’s escrow balance now stands at 39.9 billion XRP. Looking back, it can be observed that a large portion of the unlocked XRP has been re-locked.

Despite the unlocking of 1 billion XRP, the price of XRP, the fifth-largest cryptocurrency, did not experience a negative market reaction and remained relatively stable. In the past 24 hours, the XRP price increased by 1.77%, trading at $0.6139, while its market value rose by 1.8% to $33.08 billion. During this time, the trading volume decreased by approximately 15%.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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