- Ripple has released a monumental 1 billion XRP from its escrow account, leading to a noteworthy increase in the cryptocurrency’s market value.
- This release is a part of Ripple’s systematic approach to maintain a controlled inflation rate, contributing to a nearly 9% rise in XRP’s value over the past week.
On November 1, 2023, Ripple, a leading player in the crypto world, made a significant move by releasing 1 billion XRP into the market, a maneuver tracked meticulously by the blockchain monitoring service, “Whale Alert” on platform X (formerly known as Twitter). This influx occurred in three distinct tranches: 100 million, 400 million, and 500 million XRP, cumulatively valued at just over 600 million U.S. dollars.
A Strategic and Periodic Market Infusion
It is pivotal to understand that this action aligns seamlessly with Ripple’s longstanding strategy. At the network’s inception, 55 billion XRP, constituting half of the total circulating supply, were securely locked in escrow accounts. Since then, Ripple has adhered to a monthly schedule of releasing 1 billion XRP, ensuring a controlled inflation rate and a stable supply influx into the market. For a comprehensive understanding of this strategy, Ripple Labs, the developers behind the network, have provided an elaborate explanation.
Amidst this significant release, XRP witnessed a remarkable upswing, recording a nearly 9% increase in value over the preceding week. At the time of this article’s writing, XRP stands at 0.6 U.S. dollars, showcasing the impact of the release on the cryptocurrency’s market position.
Simultaneously, Ripple Labs experiences a semblance of relief in its ongoing legal tussle with the Securities and Exchange Commission (SEC), as the developer records a partial victory. The unfolding of this legal saga and its implications on Ripple’s operations and the wider crypto market continue to be subjects of keen interest and observation.
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