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Ripple’s native crypto, XRP is still looking for stable ground to perform a recovery. Amid increasing selling pressure in the crypto market, an abrupt and shocking unlocking of half a billion XRP tokens from <a href="https://news.todayq.com/crypto-escrows-and-xrp-what-is-it/">escrow accounts</a> took place on Friday. This unlock has stirred speculation within the crypto community. Is this Ripple’s new XRP move? 
As per the data shared by WhaleAlert, a total of 500 million XRP (approx worth $306.5 million) was released from the “rDqGA” address in two different transactions. However, the biggest of the transactions recorded by the on-chain tracker turned out to be unlocking 300 million XRP (approx worth $183.8 million). 
There is no such clarity provided over Ripple’s intentions behind this move but the release has left many questioning the company’s next move. It is expected that the unlocking may contribute to short-term price fluctuations. Some are suggesting that this can be Ripple’s strategic move to maintain liquidity in the XRP market and support its use in cross-border transactions.&nbsp; 
The release of such a high amount of XRP has contributed to a decline in its price. XRP price is down by over 1% over the YTD basis, while, it dropped by another 2% in the last 24 hours. XRP is trading at an average price of $0.6091, at the press time. Its 24 hour trading volume is also down by around 19% to stand at $1.29 billion.&nbsp; 
Ripple’s native crypto price is down by more than 12% in the last 30 days which shows increased pressure on the community. Meanwhile, Bitcoin (BTC) and Ethereum (ETH) have also shed gains and printed red indexes in the same time frame. BTC and ETH prices dropped by 1.5% and 12.17%, respectively. What does the community say? 
The XRP community expressed concerns about the impact of Ripple’s escrow releases on the token’s price. Although these releases stand crucial for liquidity and meeting business demands, they often come in line with temporary price downturns due to increased supply. 
It’s noteworthy that Ripple tends to lock a portion of the released XRP after unlocking to manage price movements. Despite the recent decline in XRP’s price and trading volume, the crypto has shown resilience over the long term. This reflects its ongoing relevance in the market. 
However, the recent decline has come with a broad market drop over the last day. The cumulative crypto market cap is almost down by 0.4% to stand at $2.62 trillion.

500 Million XRP tokens unlocked abruptly, What’s happening?

Todayq News

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