Ripple's recent escrow activity has garnered attention as it locks 700 million tokens in escrow, raising market interest and speculation.
Ripple's Regular Escrow Actions
Ripple regularly releases 1 billion XRP monthly as part of its escrow program to ensure predictable token supply. These tokens are used for institutional sales, operational costs, and other purposes.
Unexpected XRP Movements
This time, Ripple did not release the usual 1 billion XRP on April 1 but moved 1 billion XRP between wallets, locking 700 million back in escrow. This surprised many, sparking supply change speculations. XRP's price fell by 1.87%, reaching $2.09.
Market Impact and Future Prospects
Ripple CEO Brad Garlinghouse recently hinted at potentially cutting back XRP sales, which could help ease pressure on the token's price. Ripple still holds over 40% of the total XRP supply. Last month, it withdrew its cross-appeal against the U.S. SEC. The XRP price remains stable, down by only 0.2% in the last 24 hours.
Amid recent developments, despite slight price fluctuations, Ripple continues to draw attention with its token management strategy and market actions.
