April 15, 2024
Ripple Locks 800 Million XRP in Escrow, Impact on Price?

Ripple Labs, a leading US-based payments firm, has locked a large amount of XRP tokens in its escrow wallet as part of its monthly unlock program to help strengthen its ecosystem and XRP.

Ripple withdrew 800 million XRP

A recent report from on-chain tracker Whale Alert revealed that Ripple has withdrawn approximately 800 million XRP tokens. This is no surprise, as the reported transactions have been a recurring result by the payment firm.

The payments firm locked up the aforementioned funds following its monthly 1 billion XRP release, which has caught the attention of the crypto sector. According to Whale Alert, the firm executed the transaction in two separate transfers.

For the first transaction, Ripple locked up 500 million XRP tokens, worth $253 million at the time of report. Data from XRPScan shows that 500 million

Meanwhile, another transaction transferred 300 million XRP worth approximately $151 million to the company’s escrow wallet. According to data from XRPScan, Whale Alert revealed that the transaction was made by another wallet address identified as “Ripple 10”.

The company has been releasing XRP from its escrow holdings every first day of the month. This process is a component of Ripple’s strategy to regulate the amount of XRP in circulation and maintain stability in the dynamic world of digital assets.

After previously making up 55% of all XRP supply, escrow accounts now hold 40.7% of the supply. This is a result of the progressive unlocking process since it began in December 2017.

As of December 2017, the firm held 55 billion XRP as part of an escrow system initiative, mostly implemented on the XRP Ledger (XRPL).

XRP whale on dumping spree

Whale Alert has also detected a massive decline of XRP on cryptocurrency exchanges (CEX). Whale Alert reported that more than 67 million XRP were moved to the Bitso and Bitstamp platforms.

Further data shows that the unknown wallet address r4wf7enWPx…5XgwHh4Rzn transferred 37.9 million XRP to a Bitso-based wallet address. At the time of the transfer, the value of the funds was approximately $19 million.

Later, 29.7 million XRP were transferred to Luxembourg-based crypto exchange Bitstamp in a separate transaction. According to the tracker, transactions worth about $15 million came from the same wallet address. This particular wallet address has been doing these types of transactions on CEX for some time now. It is believed that this may be due to Ripple’s strategic partnerships with these centralized exchanges.

The price of XRP is still trading at $0.505, down more than 2% over the past week. Its market capitalization is currently up by 2%, but its trading volume has decreased by more than 36% in the last 24 hours.

XRP is trading at $0.5053 on 1D charts. Source: XRPUSDT on tradingview.com

Featured image from iStock, chart from tradingview.com

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source: www.newsbtc.com

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