In the early hours of August 2, Ripple executed two significant transactions, locking 700 million XRP back into escrow, valued at over $2.08 billion.
Transaction Details
These transactions, totaling 500 million and 200 million XRP respectively, were identified through blockchain monitoring platforms and later shared by crypto analyst Xaif (@Xaif_Crypto) on X. The transactions occurred just minutes apart, with the 500 million XRP lock at 05:44 UTC and the 200 million XRP lock registered at 05:43 UTC.
How Ripple Escrow Works
Ripple's escrow system was introduced in 2017 to address long-standing concerns regarding XRP's circulating supply. In this mechanism, 55 billion XRP were initially placed into a series of time-locked contracts, with a maximum of 1 billion XRP released monthly. Some experts believe this escrow system protects XRP's price, and the company retains the option to place unused XRP back into escrow.
Potential Impact of Escrow Activity
At the time of the escrow activity, XRP traded just below $3, a crucial support level lost on August 1. Investors expressed concern over the asset's trajectory, but its relative strength may be attributed to renewed institutional interest and ongoing developments in Ripple's international partnerships.
Ripple's escrow activities may influence the market, and observers continue to monitor how these decisions correlate with price movements of the digital asset.
