2024-05-05
Whale Alert, a platform that tracks blockchain activities, has announced the release of 400 million XRP tokens from escrow.
These Ripple-linked assets are valued at $213.9 million, but the wallet responsible for the release remains unknown.
This release is different from the usual XRP escrow unlocks, which are typically conducted by Ripple Labs Inc., the crypto payments platform.
Last month, a similar situation occurred when an unidentified wallet unlocked 500 million XRP, valued at approximately $314.87 million at the time.
While there are speculations about the identity of the wallet, it is important to note that Ripple previously announced its intention to lock 55 billion coins in escrow and release 1 billion coins each month through two or three transactions.
This approach aims to regulate the market dynamics of the token.
These escrow unlocks often increase the supply of XRP in the market, which can temporarily affect its price.
Pro-XRP lawyer Bill Morgan has criticized this method, stating that it lacks innovation.
Recently, unlocking of an additional 800 million XRP from escrow, which was confirmed to be done by Ripple.
As a result, the price of XRP dropped by 2.74% to $0.4995, while the trading volume increased by 31.66% to $1.37 billion. Ripple then locked the 800 million XRP in escrow accounts.
During this time, there were significant transfers that led to speculation about Ripple's motives behind these transactions.
The release of the latest 400 million coins from escrow coincides with a significant increase in the price of XRP, which is currently trading at $0.5318, reflecting a 2.01% increase within the last 24 hours.
However, it is uncertain whether the XRP escrow unlocks or other factors contributed to this price surge.
The ongoing Ripple versus SEC lawsuit has generated mixed sentiments in the past month. This recent upward trend in XRP's price provides some positive momentum for the token.
