American blockchain payments company Ripple Labs Inc. is back in the news following a number of transactions involving XRP that were released from escrow.
Once more, 1 billion XRP floods the market
As the primary XRP administrator, Ripple Labs is well-known for its monthly, slow release of XRP from escrow, which normally contributes to the coin’s market momentum. Data from the cryptocurrency analytics platform Whale Alert indicates that the payments company has issued one billion XRP in two different transactions.
The platform claims that wallets connected to Ripple Labs received 300 million XRP, or $156,065,808, from an unidentified wallet. In addition, 200,000,000 XRP worth $104,026,638 was moved to a different wallet under Ripple’s control. In addition, larger tranches totaling 500 million tokens were delivered to addresses connected to Ripple.
Following this fund consolidation, Ripple Labs released 500,000,000 XRP, or roughly $259,851,912, from escrow into an unidentified wallet. A further 500 million XRP were released, utilizing market fluctuations, but at a slightly higher $259,902,249 price.
The price of XRP has a history of fluctuating over time since the release of Ripple escrow. The overall mood of the market frequently affects the direction of this spike. Whale accumulations have currently spurred a modest rebound, causing the total market capitalization to increase by 0.54% to $2.54 trillion in a single day. The price of XRP has risen by 0.23% to $0.5196, riding this trend.
Whether the current XRP escrow transaction will cause market dilution and halt the XRP rebound is unclear, but there appears to be a bearish trend in the trading volume. This measure has decreased by over 53% as of the time of publication to $565,557,394, highlighting the ongoing decline in market sentiment.
What Does Ripple Future Hold?
Nonetheless, XRP continues to be one of the most closely followed digital currencies and is ranked in the top 10 by market capitalization.
It is anticipated that the market will calm down, and XRP will keep its equilibrium after this escrow release. Over the course of the last month, the virtual currency has soared from a low of $0.4879 to a high of $0.5689, all while maintaining an extremely narrow trading range.
If XRP breaks out of this range, it might rise to $0.72, the highest level for the year. The outcome of the Ripple v. SEC litigation in the upcoming weeks or months will also significantly impact this breakthrough.
