$XRP has encountered challenges in its attempt to reestablish positive price momentum throughout the current month, as seen by a continuous six-day period of declining prices last week. The #XRP community is already experiencing the consequences of this absence of momentum, leading to the emergence of theories on a potential catalyst that might trigger the next increase in XRP price.
There is already speculation circulating that Ripple intends to initiate the process of burning the 41.9 billion XRP coins that are currently held in escrow. While without official confirmation, there are assertions suggesting that this action has the potential to significantly increase the valuation of XRP.
The prospective ramifications of a complete escrow token burn
The XRP coin is associated with Ripple, a corporation that now maintains a substantial amount of XRP in escrow. At now, Ripple possesses a total of 41.9 billion XRP that is held in a locked state, while a monthly release of 1 billion XRP from escrow is observed. The substantial accumulation of XRP has engendered concerns over the potential for Ripple to inundate the market and precipitate a significant decline in price.
Nevertheless, there are speculations circulating around the possibility of Ripple initiating the burning of all XRP held in escrow, which may potentially result in a significant increase in the value of XRP. The elimination of all escrowed XRP by Ripple has the potential to substantially reduce the overall supply of XRP, hence potentially exerting a beneficial influence on the market price.
The dissemination of the rumour originated on the social media platform X, initiated by the user account @realXRPwhale, subsequently prompting a reaction from people within the community. Despite lacking verification, the account disseminated an update on Ripple, stating that they had burned a significant amount of 50 billion $XRP tokens.
While several individuals have expressed delight over the potential price implications of this occurrence, others have disregarded it as a groundless speculation.
Ripple has not confirmed nor denied speculations regarding the potential destruction of all its tokens stored in escrow. However, it is worth noting that this is not the only instance in which such a rumour has surfaced, implying the possibility of such an action by the technological firm. However, it is worth considering that the occurrence of this event is not entirely implausible, as indicated by Ripple CEO Brad Garlinghouse in a recent interview conducted in 2021.
Additional variables that may contribute to the escalation of XRP pricing encompass significant alliances established by Ripple and a definitive resolution of the ongoing litigation involving the United States Security and Exchange Commission. Nevertheless, it is worth noting that there has been a notable surge in the acknowledgment of XRP subsequent to a legal ruling in the United States affirming that the aforementioned digital asset does not fall under the classification of a security.
As of the present moment, the trading value of XRP is at $0.4863, exhibiting a very stable performance as it endeavours to surpass the threshold of $0.5. Based on the analysis of an expert, it is posited that the price of XRP may experience an upward trajectory as a result of a flourishing altcoin season, contingent upon the sustained reduction of Bitcoin's market dominance. According to empirical research, historical data indicates that XRP has exhibited a tendency to experience more losses than gains throughout the month of October.
