Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
On Jan. 1, 2024, Ripple, the leader in corporate crypto solutions, executed its planned release of 1 billion XRP from its escrow accounts. This well-established practice, occurring every first of the month, saw three distinct transactions unfold, injecting a measured dose of liquidity into the cryptocurrency market.
The initial tranche, a sizable 100 million XRP valued at approximately $61.14 million, emerged from Ripple’s secure vault. This was followed by a larger 400 million XRP contingent, estimated at $244.57 million, and finally, a substantial 500 million XRP wave, worth $305.71 million, crested onto the market.
Ripple implemented the escrow system at the end of 2017 to ensure controlled distribution and market stability for XRP. With 55 billion tokens allocated across a series of escrow accounts, each holding 1 billion of them, the controlled release is designed to span the next 42 months, potentially concluding by mid-2027.
XRP price reaction
While the initial market response saw XRP dip by approximately 2%, the reaction was short-lived. By the current moment, XRP has recovered most of its losses, closing with a marginal 0.3% decline compared to the previous day.
This resilience, coupled with Ripple’s transparent and predictable release strategy, has fostered cautious optimism among investors and enthusiasts.
Presently, XRP trades at around $0.614 per token, demonstrating a steady rebound. As Ripple continues its scheduled releases, the broader cryptocurrency community remains keenly focused on market dynamics and the potential long-term impact on XRP’s value.
