Blockchain payments firm Ripple Labs Inc has released a new batch of 1 billion XRP from escrow, a transaction that can impact market price
American blockchain payments firm Ripple Labs Inc. is in the spotlight again after conducting several transactions involving XRP released from escrow.
1 Billion XRP Floods the Market Again
Ripple Labs is known as the major administrator of XRP and it generally helps to maintain the coin’s market momentum with gradual release from escrow monthly. According to data from crypto analytics platform Whale Alert, the payments firm has released a total of 1 billion XRP in two distinct transactions.
According to the platform, wallets associated with Ripple Labs received one 300 million XRP worth $156,065,808 from an unknown wallet. To complement this, another 200,000,000 XRP valued at $104,026,638 was also transferred to another Ripple-controlled wallet. Besides this other bigger tranches of 500 million tokens were also sent to Ripple-linked addresses.
After this fund consolidation, Ripple Labs released 500,000,000 XRP worth about $259,851,912 from escrow at an unknown wallet. Another 500 million XRP was also unleashed but at a slightly higher $259,902,249, taking advantage of changes in price.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (259,902,249 USD) unlocked from escrow at unknown wallethttps://t.co/tKSO3OiikX
— Whale Alert (@whale_alert) June 1, 2024
Historically, XRP price is known to shift in tandem with the Ripple escrow release. The direction of this surge is often influenced by the general sentiment in the market per time. At the moment, whale accumulations has triggered a mild recovery that has seen the combined market cap jump by 0.54% in 24 hours to $2.54 trillion. Riding on this trend, the price of XRP has inked a 0.23% surge to $0.5196.
Whether or not this recent Ripple escrow transaction will derail this XRP recovery with market dilution, the trading volume hints a bearish trend to note. At press time, this metric has slipped by more than 53% to $565,557,394, underscoring the sustained dampened sentiment in the market.
What Comes Next For XRP?
XRP remains one of the most watched digital currencies, however, one that has managed to maintain its stance among the top 10 assets by market cap.
Following this escrow release, there is an expectation that the market will settle down and XRP will maintain its balance. The digital currency has maintained a very tight trading range over the past month, soaring from a low of $0.4879 to a high of $0.5689.
Should XRP manage to break free from this range, it might shoot toward its highest level for the year at $0.72. This breakout is also notably dependent on the outcome of the Ripple versus SEC lawsuit in the coming weeks or months.