• Ripple recently released 1 billion XRP tokens from an unknown wallet in two transactions of 500 million XRP each.
• This follows the company’s monthly routine when it unlocks tokens from a pre-timed Escrow system, designed to create a predictable and stable XRP circulating supply.
• The funds are used to provide liquidity for On-Demand Liquidity (ODL) partners, while the remaining XRP tokens return to Escrow.
Ripple Releases 1 Billion Locked XRP Tokens
Ripple has released 1 billion locked XRP tokens from an unknown wallet through two transactions of 500 million XRP each. According to the whale-tracking site Whale Alert, this action follows Ripple’s monthly routine when it unlocks tokens from a pre-timed Escrow system designed to create a predictable and stable XRP circulating supply.
Purpose Of Unlocking The Tokens
The purpose behind unlocking these tokens is to provide liquidity for its On-Demand Liquidity (ODL) partners. However, the unlocked funds are still in Ripple accounts as of now. Following the usual pattern, when Ripple finally moves them for its ODL services, the remaining XRP tokens will return to Escrow. After the February 1 billion token release round, Ripple relocked 600 million XRP in two transactions in Escrow. Notably, the fintech company sells the unlocked assets to ODL partners while it purchases XRP used for its operations from the free market.
XRP Quarterly Market Report
According to the quarterly market report, over the last three months in Q1 2023, Ripple sold XRP tokens worth $2.93 billion to its ODL partners. The firm recorded a net sale of $361 million within the reported period.
Current Price Outlook For XRP
The latest Escrow unlock transactions comes as XRP slipped from the $0.48 mark and is currently struggling to rebound due to a market-wide downturn over recent weeks that prevented it from breaking above $0.50 price level resistance barrier yet again.
Ripple’s unlocking of 1 billion locked up token ensures that there is enough liquidity available on demand for its ODL partners while also creating a more stable and predictable circulation supply of XPB that can be beneficial towards long term growth prospects of this cryptocurrency asset class overall as well as individual coins like XPB itself specifically within near future time frames too over next few months potentially too .