XRP experienced volatility in March during the release of Ripple’s monthly escrow allocation. A total of 240 million XRP tokens were sold by Ripple within two weeks, with transactions occurring on March 5 and 13. These sales coincided with temporary price dips for XRP.
Data on the XRP ledger explorer XRPScan reveals that the initial sale on March 5 involved 100 million XRP transferred from a Ripple wallet to an unknown address. The market value at the time placed this transaction at roughly $63 million.
The company executed a larger sale on March 13, sending 140 million XRP, valued at over $94.5 million. In total, these sales represent over $157 million worth of XRP sold by Ripple in just two weeks.
Market Response and Recovery
The XRP market price reacted to these sales with short-term fluctuations. On March 5, the price dropped by more than 17%, while a similar decline occurred on March 13. Despite predictions of an XRP pump, this decline caused XRP to fall below $0.6, reaching a 24-hour low of $0.5897. However, it’s important to note that XRP has since recovered and is trading at $0.6192.
Community Concerns and Escrow Management
Some XRP holders have expressed concerns that the regular release of XRP from Ripple’s escrow and subsequent sales contribute to downward pressure on the price. This is due to the potential for increased supply in the market.
For March’s escrow release, Ripple originally planned to unlock 1 billion XRP. However, only 500 million XRP were successfully released, with the second transaction encountering an error. Despite this, Ripple locked back the customary 800 million XRP, raising speculation that the company would release the other 500 million XRP later in the month.
Read Also: No XRP Left Escrow On October 1. Has Ripple Ended the Monthly 1 Billion XRP Release? Details
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It’s worth noting that similar partial releases from escrow have happened before. In February, Ripple faced a similar situation where only 600 million XRP were initially unlocked, with the remaining 400 million released later in the month. Given this precedent, the company might attempt to release the remaining 500 million XRP for March allocation.
Despite the recent drop, the XRP army is still very bullish on the digital asset. After prolonged underperformance, the digital asset finally began climbing in early March. Although it has dropped, an analyst recently revealed when XRP would reclaim its all-time high. Time will tell if XRP can reach the high expectations of its community.
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