XRP has experienced more difficulty than most other top 10 cryptocurrencies by market capitalization, with pessimistic feelings towards it showing no signs of abating. Notably, Ripple recently released a large quantity of tokens from cold storage, which could potentially put additional pressure on the price.
Ripple Unlocks 500 Million XRP
Around 5 a.m. on a Friday, Whale Alert, a monitoring platform for large cryptocurrency transactions, announced two significant XRP transfers through their system. The initial transaction released 200 million tokens from an escrow wallet, equating to approximately $122.63 million at the moment of transfer.
An additional transaction occurred shortly after the first, releasing an extra 300 million XRP tokens from escrow. The value of this second batch was greater, amounting to $183.89 million at that moment. Consequently, the total amount of unlocked tokens now reached 500 million. Combined, these two transactions exceeded $300 million in worth.
The unscheduled unlocks of assets from Ripple’s reserve have raised eyebrows within the Ripple community for various reasons. Notably, Ripple typically carries out unlocks only at the beginning of each month. Consequently, these recent transactions have piqued interest in the crypto world.
An additional issue worth pondering is that Ripple may be offloading XRP tokens, leading to an increase in supply and intensifying the downward pressure on this troubled cryptocurrency. Yet, Ripple has remained tight-lipped about the purpose of these unlocks, as there have been no transfer activities recorded since then, only unlock transactions.
Unlocks Can Send Price Crashing?
In simpler terms, Ripple’s XRP community is accustomed to monthly unlocks where a billion XRP tokens are released from storage. However, on most occasions, the greater portion of these tokens is then returned and kept in escrow once again.
Normally, the release of unlocked XRP tokens doesn’t negatively influence an altcoin’s price when it’s anticipated. However, this situation is different because the unlocks are unexpected. This has sparked curiosity as to why Ripple might be releasing XRP tokens before the scheduled unlock dates.
Up until now, XRP‘s price has remained unaffected by the recent unlock, staying near $0.61 with a minimal decrease of 0.91% in the past day. Nevertheless, over the last seven days, XRP has registered an uptick of 4.74%, indicating its earlier positive momentum.
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2024-04-12 18:04