- Ripple releases 1 billion XRP tokens from escrow as part of its routine monthly release.
- Lawyer Bill Morgan explains that the impact of Ripple’s sales on XRP’s price will decrease over time.
- XRP has seen a significant 38% surge in price over the past week.
The crypto community has recently witnessed a significant release of XRP tokens from Ripple’s escrow into the market amid a bullish trend. Specifically, today, Ripple unlocked 1 billion XRP tokens as part of its routine monthly release.
Details of Ripple’s Latest Escrow Execution
Whale Alert highlighted the development, noting that the December escrow release occurred in three separate transactions: one involving 500 million XRP and two others with 200 million and 300 million XRP, respectively. At the time of the release, the unlocked tokens were worth approximately $1.92 billion.
This large influx of XRP into circulation has raised concerns among market participants, especially as XRP is experiencing a 38% weekly price surge. Many worry that the release could negatively affect XRP’s value.
However, key figures within the XRP community have reassured holders that there is no cause for concern. Pseudonymous community figure WrathofKahneman reminded members that the 1 billion XRP released today is part of the regularly scheduled escrow release, which happens every month and is planned well in advance. He also pointed out that any unsold tokens are returned to escrow.
Ripple’s Release Having Diminishing Impact on XRP Price Over Time – Expert
Additionally, attorney Bill Morgan explained that as more XRP is released from Ripple’s escrow over time, the proportion of the total monthly trading volume represented by Ripple’s sales decreases.
In other words, Morgan noted that even for those who still subscribe to the theory that Ripple’s escrow releases impact the market, the effect of these sales will continue to diminish. This is because the total supply of XRP is in circulation, and Ripple will control fewer tokens.
At press time, XRP hovers around $1.90, seeing a modest 0.32% gain in the last 24 hours. XRP has grown by 267% over the last four weeks.
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