Ripple Releases 1 Billion XRP – What Does This Mean?

As usual, Ripple kicks off the new month by releasing 1 billion XRP from escrow, split into two simultaneous transactions of 500 million XRP each.

Ripple releases 1 billion XRP tokens

Whale Alert, a platform that monitors large transactions, has captured these two transactions. The release took place according to the programmed escrow release system, exactly on the first day of the month at midnight.

Whale Alert recorded both trades simultaneously. The first transaction, dubbed “Escrow Execution #18”, unlocked 500 million XRP to a Ripple account. After transferring the assets to this account, the total balance in the account was 1 billion XRP.

The second transaction is a mirror image of the first. This transaction, dubbed “Escrow Execution #21”, unlocked the funds in another Ripple account, resulting in a final balance of 1 billion XRP.

Each lot of 500 million XRP was worth $234.8 million at the time of issuance, totaling $469.6 million for all 1 billion tokens.

What are the XRP tokens used for?

Ripple is expected to use the released funds to provide liquidity to its On-Demand Liquidity (ODL) partners and exchanges. However, at the time of writing, the unlocked assets are still in the Ripple related accounts.

After being deployed to meet XRP liquidity needs, the remaining assets will be returned to escrow in accordance with the usual procedure. In February, the company closed 600 million XRP back into escrow after releasing 1 billion tokens for the month.

Newsbit previously reported that Ripple sold $2.93 billion in XRP tokens to its ODL partners in the first quarter of 2023. During this period, the company had net sales of $361 million.

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The Ripple XRP escrow system is set up to lock a certain amount of XRP into a smart contract for a predetermined period of time, ensuring a predictable and stable supply of XRP in the market. Since 2018, the company has been unlocking 1 billion XRP monthly, except for a hiatus in November 2022.

XRP price drops

XRP has been struggling lately. The coin failed to regain the USD 0.50 level, and it is experiencing significant resistance near USD 0.48.

At the time of writing, XRP is trading at USD 0.459, down 4.18% in the past 24 hours. The coin must hold the $0.46 level as support to reduce the chance of further declines towards the April 26 low of $0.44.

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