Amid a widespread market correction, XRP’s value has dropped by more than 3% in 24 hours. This decline coincided with Ripple’s release of 1 billion XRP from escrow for September.
The escrow releases were highlighted in a series of automated posts on X by Whale Alert, one of the top whale-tracking platforms in the crypto industry. These transactions were executed simultaneously at midnight (UTC).
The monthly release of XRP from escrow is a strategic move to maintain the liquidity of XRP and prevent a drastic downfall. This process was introduced in 2017 with plans to release 1 billion XRP every month for 55 months to ensure controlled distribution. However, the dip in the value of XRP coinciding with this release, raised concern among traders and investors.
Read Also: Ripple-SEC Case: Two Legal Memos Unsealed Show That XRP Does Not Constitute a Security
Ripple Releases 1 Billion XRP
Ripple’s escrow release was done across four uneven transactions, as reported by Whale Alert, the tracker of large transfers of cryptocurrencies. The first transaction saw the release of 300 million XRP ($153.2 million). The transaction that followed released another 100 million XRP ($51 million). The subsequent transactions released 200 million XRP ($102.1 million) and finally, 400 million XRP ($204.2 million).
Interestingly, none of these transactions included any unusual Memos, which contrasted with one of the escrow releases from August that led to speculations.
Following the escrow release, Ripple initiated a transfer of 19.9 million XRP ($10.1 million) to Binance. The transaction did not involve any of the recently released tokens and it occurred at 00:35 (UTC).
Another thing to note is that Ripple has yet to lock back any of the unlocked tokens. Usually, they return most of the tokens to escrow after obtaining the necessary amount, just as they did in August with the 800 million XRP that was returned. Hopefully, this usual token lock-back will play out before the end of today.
Read Also: Ripple Moved Millions of Dollars Worth of XRP
XRP Suffers 3% Drop as Crypto Market Corrects
In the middle of all of this, XRP witnessed a 3.51% decline in the past 24 hours, thanks to the broader market correction. This came after XRP reached $0.5496 on August 29. Currently, XRP is trading at $0.5087, marking a 7.4% decrease from its late August high, with two consecutive sessions of losses.
It is important to note that the downward trend is not unique as the release has not had any notable impact on the price of XRP. The market leader, Bitcoin (BTC), has experienced a 4.48% decrease in the last 24 hours and the overall market valuation is down by 3.35% as the entire crypto market is witnessing a corrective phase.
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