- Whale Alert, a blockchain transaction monitoring service, tracked and reported the details of this recent disbursement.
- The regular release strategy by Ripple is part of its effort to ensure smooth operations and financial stability in cross-border payments.
Ripple has just distributed 500 million XRP from its escrow in two separate transactions, one of 200 million and another of 300 million XRP.
This disbursement is consistent with Ripple’s regular practice of releasing 1 billion XRP each month to enhance liquidity and aid in cross-border financial activities.
Related: Crucial Update: XRP Ledger (XRPL) Launches fixAMMOverflowOffer Amendment
This considerable release has occurred alongside a downturn in the price of XRP, stirring discussions within the XRP community and among cryptocurrency investors about the impact of such releases on the market value of XRP.
It is observed that these releases often lead to a temporary decrease in price due to the increased supply hitting the market.
Ripple asserts that these regular releases are essential for providing the liquidity required by its business partners and for ensuring the smooth execution of transactions.
Read more: Cryptocurrency Update: Ripple Strengthens as SEC Faces Setbacks in Court
Part of Ripple’s strategy involves not only releasing these funds but also potentially re-securing a portion of them afterward to manage market impact and maintain price stability.
At the time of reporting, XRP’s price had decreased by 9.1%, trading at $0.54. The trading volume for XRP showed a decrease, dropping 51% from the previous day to $1.19 billion.
Despite the recent downturn, XRP has recorded an decrease of over 6.1% in the last seven days, although it has experienced a monthly decline of 12%.
