Ripple has unlocked one billion XRP tokens valued at over $1.92 billion at the current market price. This release is the standard operation carried out by the San Francisco-based crypto company. Customarily, every first day of a new month, Ripple releases 1 billion tokens to open the market.
Ripple’s Escrow Strategy and Market Stability
The original XRPL novel, Ripple will unlock a total of 55 billion tokens all from its escrow account. This account holds approximately 55% of the total XRP supply. This approach makes the supply of XRP more predictable in the market and prevents a crash in price due to excess supply.
As per estimate, Ripple has less than 38 billion tokens left in its accounts. At the moment, the exact tokens remaining will become known when Ripple relocks all unclaimed tokens. When this has happened, the value can be estimated using the prevailing market price.
XRP’s Price and Market Performance
Ripple’s XRP has made significant gains in the broader cryptocurrency market and will not want to undo the price gains it has recorded. Ripple will remain cautious so as not to trigger market volatility or spread panic among investors and traders.
XRP hit a seven-year high with a gain of about 283.9% in the month of November. So, the release of one billion tokens might cause unease in the market, particularly among new traders and investors. However, among seasoned stakeholders, this release is standard protocol for Ripple.
Anticipation for the Week Ahead
Although XRP witnessed a drawdown on the first day of trading in December, experts maintain it was mild. The analysis lies on the bullish run XRP had in November. Hence, the 2.4% drawdown has been waved off as insignificant for the token.
As of this writing, XRP is exchanging hands at $1.90, a 1.98% increase in the last 24 hours. Meanwhile, market volume has dropped by 36.23% or $10.64 billion.
On the last day of November, XRP hit $1.95 with many anticipating it to breach the $2 mark. However, XRP could not break the resistance level. Nevertheless, there is high anticipation that when active trading commences on Monday, XRP might register an uptick.
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