According to U.Today, Ripple, a prominent blockchain-based digital payment network, has released a substantial one billion XRP from escrow in the last 24 hours. This significant transaction has drawn the attention of the crypto community due to its massive volume and potential implications for the XRP price. Whale Alert, a renowned blockchain tracking service, promptly informed the public about these large transactions. The first alert indicated that 500 million XRP, valued at approximately $238.5 million, were released from escrow into an unidentified wallet. Shortly after, Whale Alert reported that an additional 100 million XRP, estimated at $47.6 million, were also released from escrow. The final alert in this series of transactions was for 400 million XRP, valued at around $190.7 million.
Ripple's escrow system was established to offer predictability and transparency to the XRP supply. In 2017, the company placed 55 billion XRP, which is 55% of the total supply, into a series of escrows. These escrows are programmed to release one billion XRP each month over a span of 55 months. The purpose of this mechanism is to alleviate concerns about the XRP supply overwhelming the market and causing price volatility. Each month, Ripple decides whether to sell or retain the released XRP based on market conditions and the company's operational needs. Any unused portion is returned to the escrow account.
Despite the massive volume of XRP being released, the price of XRP has remained stable. At present, XRP is trading at $0.4816, reflecting a modest increase of 0.16% in the last 24 hours. The trading volume, on the other hand, has seen a significant surge, jumping 40.43% to $843.03 million. This increase in trading volume indicates heightened market activity, potentially in response to the large release of XRP. While the immediate price impact has been minimal, sustained or increased selling pressure from this released XRP could eventually affect the market.