Ripple’s 500 Million XRP release raises specter of a market dump.
Whale Alert flags large XRP transfer from Binance, indicating potential bullish sentiment.
XRP price fluctuates amidst escrow release, down 5% in a week but up 18.72% in a month.
A recent XRP escrow release of 500 million tokens, worth approximately $281 million, has sparked speculation of a potential sell-off for the XRP tokens.
While some in the crypto community voiced concerns of an XRP dump, CoinMarketCap data indexed a slight price rise of nearly 2% in the past hour, in spite of a 1.2% decrease in the past 24 hours. XRP is currently trading at $0.5720.
The escrow release, which transferred the XRP tokens to an unknown wallet, was flagged by Whale Alert on social media platform X (formerly Twitter). This event is not unprecedented, as Ripple has a longstanding practice of scheduled escrow releases to manage XRP supply.
In a blog post, Ripple confirmed its plan to release 55 billion XRP tokens over 55 months. Instead of releasing the entire supply of the token at once, Ripple’s team put the 55 billion XRP in a series of escrows.
While the gradual increase in XRP supply could lead to price dilution to maintain market capitalization, the team emphasizes that the actual amount of XRP entering circulation is likely to be less than the released amount. Any leftover XRP is placed into new escrows for future release.
Meanwhile, a separate transaction involving a transfer of over 23 million XRP, valued at $13 million, from Binance to an unknown wallet hinted that the holder is bullish in the short term and expects a price surge. As a result, the wallet transferred the XRP holdings to a hardware wallet.
🚨 23,177,727 #XRP (13,053,084 USD) transferred from #Binance to unknown wallethttps://t.co/zdfh96t2AO
— Whale Alert (@whale_alert) August 2, 2024
XRP has experienced a 5% decline in the past seven days but has seen an 18.72% increase over the past month. Despite being one of the worst-performing altcoins in the crypto market, since August 2023, with a 16.47% decline, the recent whale movements indicate that a price reversal is on the cards.
The post XRP Whale Movements Amidst 500M XRP Escrow Release appeared first on Coin Edition.
