Key highlights:
- Ripple unlocked 1 billion XRP from escrow on October 1 in four separate transactions
- The move follows Ripple’s decision to place 55 billion XRP in escrow to provide predictability around token supply entering the market
- XRP price dipped slightly following the release, denting a month-long impressive run for the asset
Ripple has unlocked 1 billion XRP from escrow as part of its regular monthly token release, putting roughly $1.49 billion worth of XRP back under the company’s control. The release comes as the market continues to watch Ripple’s escrow activity for its potential effect on XRP’s circulating supply and price.
Ripple releases 1 billion XRP
The October release follows Ripple’s established escrow schedule, which allows the company to unlock up to 1 billion XRP each month. Ripple placed 55 billion XRP into escrow in 2017 to provide greater predictability around the supply entering the market.
Ripple’s latest XRP unlocks happened over four transactions, executed within minutes of each other. The transactions released a combined 1 billion XRP, with 400 million, 300 million, 200 million, and 100 million XRP unlocked in separate transfers.
The latest unlock does not necessarily mean that the entire 1 billion XRP will enter circulation. Ripple has historically returned a large portion of its monthly releases to escrow after using or distributing a smaller amount.
Ripple’s escrow system allows the company to manage the release of XRP over time rather than placing its entire holdings into the market at once. Tokens that Ripple does not use during a monthly release can be locked into new escrow contracts.
For example, Ripple re-locked roughly 700 million XRP following its September release, leaving a smaller portion available for distribution. This mechanism means the headline figure attached to each monthly unlock can overstate the immediate increase in circulating supply.
XRP traders watch supply impact
Large scheduled XRP releases remain a recurring market event because traders monitor whether Ripple’s distributions could create additional selling pressure.
The October unlock therefore adds another supply-related event to the XRP market, although its direct price impact will depend on how much of the released tokens Ripple ultimately distributes and how much it locks back into escrow.
At press time, the unlocks have helped send XRP price tumbling by about 2.5% on the 24-hour charts. Currently trading at $1.49, daily transaction volumes are also down by 23.57%, settling at 3.41 billion.
The dip in prices pales in comparison to XRP’s impressive price performance over the last month. XRP is up by 10% over the last 30 days, buoyed by a raft of positives since the start of September.
Yesterday, Ripple partnered with CSD BR to bring Brazil’s capital markets onchain via XRP Ledger, triggering a bump in prices. Barely a week ago, Ripple scored another win, after Absa Digital Asset Custody launched with its infrastructure, expanding its presence in new frontiers.
Source:: Ripple Unlocks 1 billion XRP Worth $1.49B in October Escrow Release