Ripple Labs has completed its monthly token unlock program once more, releasing 1 billion XRP from escrow. It should be noted that the action leaves little or no impact on the market price of XRP.
Ripple recently liberated a whopping 1 billion XRP worth $453.74 million from escrow, according to Whale Alert, a major crypto whale tracking website. The unlocking procedure included five different transactions, each of which contributed to the release of a certain amount of XRP.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (453,745,000 USD) unlocked from escrow at Ripple in multiple transactions
ℹ️ Due to an issue with the Ripple API the monthly escrows were not reported properly on July 1st. We are working on a fix.https://t.co/N7slnTEsxS
— Whale Alert (@whale_alert) July 2, 2023
Read Also: Ripple Returns Whooping 900 Million XRP after Unlocking 1 Billion Tokens from Escrow: Details
The first transaction released 100 million XRP, and the second and third transactions released 400 million and 200 million XRP, respectively. The blockchain-based payment platform also released an additional 100 million XRP on the fourth transaction and 200 million XRP during the fifth.
According to Bithomp statistics, these transactions took place on July 1, 2023, at 00:00 (UTC). It became speculation within the XRP community after the routine transaction was not announced on the 1st of July. This was reportedly due to an issue with Ripple’s API on the popular tracking platform Whale Alert.
On July 2, the crypto whale tracking service notified the community of the incident. They also informed followers that they are working hard to rectify the problem and provide timely reporting in the future.
XRP Unlocking on a Monthly Basis
It’s worth noting that these transactions are part of Ripple’s long-running monthly token unlock scheme, which has been in place since 2017. To keep the price of XRP stable in the market, the unlocking process is carefully monitored.
Ripple’s monthly XRP unlock is typically announced on the first day of each month. Furthermore, despite releasing 1 billion XRP from escrow this time, Ripple often returns a substantial amount of the funds to escrow within a day or two.
This method assists Ripple in meeting demand for its On-Demand Liquidity (ODL) and keeps the price of XRP steady. Ripple has yet to relock a portion of the XRP in its escrow account, according to Whale Alert.
XRP Price Has a Minor Impact The latest release of 1 billion XRP has little impact on the asset’s pricing. XRP, which is currently trading at $0.483, has dropped 0.1% in the last 24 hours.
Furthermore, according to CoinGecko data, XRP has witnessed a 0.5% drop in the last seven days. Despite this, Ripple’s consistent unlock process and controlled supply management have significantly contributed to XRP’s price stability in the market.
Read Also: Ripple and Exchanges Moved $313 Million XRP, As 800 Million XRP Is Locked Back in Escrow
Ripple’s ODL Demand and Price Stability
One of the primary drivers of Ripple’s monthly token unlock and careful management of XRP supply is to meet the demand for its On-Demand Liquidity (ODL) solution. ODL enables quick and low-cost cross-border transactions by utilizing XRP as a bridge currency.
Ripple can efficiently satisfy the needs of financial institutions and payment providers using ODL by providing a steady supply of XRP. This technique helps to maintain trust in the value of XRP by reducing volatility, which is critical for maintaining trust among market players.
Ripple’s commitment to balanced supply management underscores its commitment to maintaining a dependable ecosystem for XRP while also confirming its utility in the fast-expanding world of cryptocurrencies and blockchain-based financial solutions.
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