XRP Price Moves South as Ripple Unlocks 1B Tokens from Escrow Wallet

XRP, the native cryptocurrency of Ripple’s XRP Ledger, is trading at 2% lower in the last 24 hours. As of press time, XRP is trading at a price of $0.37 with a market cap of $18.1 billion. The XRP price has come under pressure as Ripple released 1 billion XRP tokens from two escrow wallets.

Five years back in 2017, Ripple had locked 55% of the total XRP supply in a series of escrows. Interestingly, it has capped the number of new tokens to be brought into circulation at 1 billion XRP tokens per month.

As per reports, Ripple tends to return back a vast majority of tokens it releases, back to its escrow accounts. The unlocking procedure is quite predictable and happens on the first day of every month.

The XRP price volatility can also be attributed to the XRP network address activity. Last week, the total unique addresses interacting on the network jumped to 247k in a single day. This was also the highest spike recorded since February 2020.

Ripple Sold $408 Million Worth of XRP in Q2 2022

Last week, blockchain startup Rippe released its report for the second quarter of 2022. The company reported that it sold $408 million worth of XRP tokens in Q2, a 49% jump from the previous quarter. The official announcement reads:

“Last quarter, total XRP sales by Ripple, net of purchases, were $408.9M vs. $273.27M USD the previous quarter. Ripple has continued to engage in sales solely related to ODL and these volumes have ramped up substantially as Ripple’s ODL business expanded globally.”

Ripple also added that its on-demand liquidity products saw strong demand last quarter. Q2 2022 turned out to be a record quarter for Ripple’s ODL products as volumes grew considerably with over 9x growth YoY.

“Customers continued to expand the use of ODL for use cases beyond traditional remittances or individual payments, with treasury flows and bulk payments accounting for more volume on the network,” said Ripple.

Ripple has further joined hands with a Lithuanian money transfer provider FINCI. As part of the partnership, FINCI will be leveraging Ripple’s XRP network for instant cross-border payments. FINCI is also Ripple’s first customer in Lithuania for using its ODL products.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.