1 Billion XRP Unlocked by Ripple, XRP Price Responds With 2% Decrease
On Jan. 1, 2024, Ripple carried out its planned release of 1 billion XRP from its escrow accounts, leading to a slight drop in the XRP price by 2%. This regular occurrence takes place on the first day of every month and aims to inject some liquidity into the cryptocurrency market.
The release consisted of three separate transactions, starting with 100 million XRP worth around $61.14 million. Following that, 400 million XRP with an estimated value of $244.57 million was released, and finally, a significant wave of 500 million XRP, equivalent to $305.71 million, entered the market.
The escrow system was introduced by Ripple in late 2017 to ensure controlled distribution and market stability for XRP. It involves allocating 55 billion tokens across multiple escrow accounts, each holding 1 billion tokens. The controlled release is planned to take place over the next 42 months, potentially concluding by mid-2027.
Even though XRP experienced a temporary 2% decline, it quickly recovered most of its losses and closed with a marginal 0.3% decrease compared to the previous day. This resilience, along with Ripple’s transparent and predictable release strategy, has instilled cautious optimism among investors and enthusiasts alike.
Currently, XRP is trading at approximately $0.614 per token, showing a steady rebound. As Ripple continues with its scheduled releases, the wider cryptocurrency community remains closely attentive to market dynamics and the potential long-term impact on XRP’s value.