Blockchain giant company, Ripple made headlines on the first day of September after it released a staggering 1 billion XRP coins from its escrow wallet. Following the release, the price of the altcoin reacted negatively as it plunged by over 2% according to on-chain data.
Even though this is a monthly strategy by the company to control XRP supply, it has raised questions among community members about its effectiveness on the price trajectory of the asset. XRP’s consolidation between $0.5 and $0.6 has raised further frustrations and speculations about the possibility of a $1 breakout and beyond as several market analysts have predicted.
Ripple Unlocks 1 Billion XRP
Whale Alert, a prominent crypto large transaction tracker, first reported this movement on X (formerly Twitter) earlier today. According to the tracker, Ripple unlocked the aforementioned amount of XRP in three separate transactions. The first one moved 500 million XRP, valued at $280 million, while the second and third transferred 300 million ($167.9 million) and 200 million ($111.9 million) respectively.
500,000,000 #XRP (280,008,999 USD) unlocked from escrow at unknown wallethttps://t.co/ogYZ1wf3T4
— Whale Alert (@whale_alert) September 1, 2024
Thus, the total value of XRP released by Ripple was over $560 million. A further check into the transaction details revealed that they originated from the address ‘rDqG…xEsF‘ which has been active for more than seven years.
Following the update, the community reacted to the large amount of XRP released into circulation. Some members who are not familiar with the routined release raised concerns about this, however, an updated member of the community, Luke Prince, was quick to caution them and their lack of information regarding the XRP project.
He complained about investors buying XRP without understanding how the project works. He wrote, “You buy a token like XRP and have no idea what is going on with it, what Ripple is doing, any of its use cases, how liquidity works, etc. And now you see a large amount of XRP released from escrow and you have no idea why.”
His expression signifies his frustration at the broader XRP community who do not participate or stay updated with the ecosystem activities, rather, they just buy the coin and hope for an upsurge.
As previously mentioned, Ripple releases 1 billion XRP tokens from escrow at the beginning of every month to reduce its hold on supply and increase decentralization. However, David Schwartz, the CTO of Ripple, has expressed mixed feelings about the effectiveness of this strategy.
XRP Price Movement Amid Update
Meanwhile, the price of XRP has seen a significant dip over the last day. According to data from CoinMarketCap, the seventh-largest cryptocurrency by market cap, plummeted by 2.0% to trade at $0.555 at the time of writing.
Source: CoinMarketCap
Moreover, its one-day trading volume also crashed by a notable 24% to rest at $524.7 million. A decline in the trade volume signifies reduced activities among investors and traders. Ultimately, XRP has traded within the range of $0.5527 and $0.5681 in the last 24 hours and between $0.5506 and $0.6054 in the last seven days.
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