Ripple, a major player in the blockchain space, has unlocked 500 million XRP worth $248 million, triggering volatility in the crypto market, U.Today reported. The news was made public via Whale Alert, a platform that tracks large cryptocurrency transactions. This is not an isolated incident, but part of Ripple's established strategy. The company typically releases 1 billion XRP from escrow every month, a process that usually unfolds in multiple transactions. Therefore, it is reasonable to expect more transactions in the near future.
Ripple's custody strategy is designed to achieve multiple goals. While the immediate inflow of XRP may temporarily affect the price, its main goal is to maintain liquidity and support the seamless execution of cross-border transactions. Notably, most of the released XRP is immediately returned to custody, which highlights Ripple's commitment to long-term market stability. Moreover, this strategic approach of the company is particularly relevant in the current regulatory environment, especially Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
Today’s announcement coincides with a broader downward trend in the cryptocurrency market, as investors await the outcome of the Federal Open Market Committee (FOMC) meeting, which includes discussions on interest rates. Against this backdrop, the unlocking of XRP from escrow has sparked speculation about its possible impact on the cryptocurrency’s price action. At the time of reporting, the price of XRP was down 2.9%, stabilizing at $0.488. However, the price is down 20.25% over the past 30 days, showing bearish sentiment towards XRP. Despite this decline, 24-hour trading volume surged 56.09% to $1.66 billion, showing an increase in market activity and investor participation.
