XRP, the digital asset associated with Ripple Labs, has seen a significant price increase of 1.83%. This surge comes amidst Ripple’s release of 1 billion XRP coins into circulation as part of their monthly planned coin distribution strategy. This move increases the total number of XRP tokens available by about 1.87% from the previous total of 53.312 billion tokens.
Ripple Unlock 1 Billion XRP Tokens
Ripple Labs has been gradually releasing its XRP tokens as part of a monthly distribution plan. As per information from Whale_Alerts, around 1 billion XRP has been released from escrow through three transactions involving two different wallets.
In the first transaction, 400 million XRP tokens worth more than $205.9 million were unlocked.
The second transaction released 100 million XRP tokens valued at $51.4 million.
In the final transaction, Ripple unlocked 500 million XRP tokens worth $257.3 million. Considering XRP’s current market price of $0.5177, these unlocked tokens are valued at over $514.6 million. Importantly, these tokens are still owned by Ripple Labs.
Ripple’s Coin Strategy, as 800 Million XRP Return to Escrow
This action aligns with Ripple’s long-term plan, which involves releasing XRP tokens over time. They’ve been doing this since 2017, releasing 1 billion XRP tokens each month. Ripple claims this approach boosts the availability and use of XRP but also means more coins enter the market regularly.
Ripple is keen on maintaining the stability of XRP’s price. To do so, they’ve consistently returned 800 million XRP (80% of the release) to their coin storage in recent months.
For instance, in September, Ripple promptly returned 800 million XRP (equivalent to 80% of the unlocked tokens) to escrow. The exact amount to be returned to escrow this month has not yet been determined.
In October, Ripple locked back the 800 million XRP coins that were recently released from escrow. Ripple’s decision to return 800 million XRP to escrow is part of the company’s effort to stabilize the coin’s price.
XRP’s Price Up by Over 1.83% Amidst Market Uncertainty
Ripple’s recent unlocking of XRP tokens did not hurt the coin’s price. XRP has experienced a 1.83% increase in value over a seven-day period.
However, the short-term outlook for XRP’s price remains uncertain, with various predictions circulating about where the token’s value might go as high as $21 in the years ahead.
