By Solomon Odunayo
Ripple, the San Francisco-based cross-border payment firm, has reportedly unlocked 1 billion XRP from its escrow in two successive transactions.
The huge transfers were first spotted and reported a couple of hours ago by Whale Alert, the tracker of large transactions of cryptocurrencies from wallets to exchanges.
Read Also: Brad Garlinghouse Provides Two Strong Arguments for Court to Dismiss the SEC’s Lawsuit
The two successive transactions were made in 500 million XRP each. It’s accustomed of Ripple to release this sum of XRP on the first day of each month. And this has been playing out for the past couple of years.
So, considering the current prices of the digital token XRP in the market, the huge tokens unlocked from Ripple Escrow Wallet is worth $1.6 billion.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (795,433,689 USD) unlocked from escrow at Ripple Escrow wallethttps://t.co/gQXvkEmsCf
— Whale Alert (@whale_alert) May 1, 2021
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 500,000,000 #XRP (795,433,689 USD) unlocked from escrow at Ripple Escrow wallethttps://t.co/58EBeAflhS
— Whale Alert (@whale_alert) May 1, 2021
Read Also: Crypto Whale Moves 610 Million XRP within Huobi As XRP Surges To 0.51
Major Purpose of the Monthly Transaction of XRP by Ripple
The major reason why Ripple initiates the monthly transfer of such a huge amount of XRP is to support the liquidity of the cryptocurrency on exchanges. A portion of the tokens will also be sent to its partners and customers. Ripple also uses a part of the unlocked XRP to cover its operational expenses.
Additionally, Ripple also locks back the majority of the released XRP later on the same day. And it’s worth noting that this activity does not have any impact on the price of the digital token, as earlier explained by Brad Garlinghouse, the CEO of Ripple.
Read Also: Ripple Locked Back 900 Million XRP Out of 1 Billion XRP Unlocked, Focuses On OTC Sales
XRP in the Market
Over the past couple of weeks, especially when the ongoing lawsuit with the SEC started to turn in favor of Ripple, the price of XRP has been showcasing bullish trends.
In the process of displaying the positive trend, XRP surpassed the $1.00 resistance level. At the time of filing this report, XRP is trading at $1.56, with a 0.45% price uptrend in the last 24 hours.
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