Ripple unlocks 500M XRP from escrow, re-locks 400M to manage supply, boosting price to $2.28 amid stablecoin RLUSD launch.
Ripple’s most recent XRP escrow update has caused controversy, as it has taken an intriguing turn. The company defied conventional expectations by unlocking 500 million XRP tokens, only to relock a significant quantity. This was a notable twist. What is the reason for this peculiar pattern?
Ripple unlocks 500 million XRP and vaults 400 million
Ripple has effectively executed its monthly XRP escrow release, as disclosed in an X post by Whale Alert, thereby unlocking a significant number of tokens.
According to reports, Ripple has unlocked 500 million XRP tokens valued at $1.08 billion. These tokens were transferred to the company in two distinct transactions: 300 million XRP and 200 million XRP. The 300 million XRP transfer will likely be allocated to various purposes, such as exchange-traded products (ETPs), on-demand liquidity (ODL) operations, and strategic partnerships. Although a third escrow release of 300 million XRP was detected earlier today, it appears to have been unsuccessful.
It is important to note that this unlock adheres to Ripple’s standard monthly schedule for XRP escrow distributions. Since late 2017, the platform has consistently released 1 billion XRP tokens from escrow on a monthly basis. For example, in May, Ripple unlocked 1 billion XRP, which is valued at over $2.2 billion, in three transactions: 500 million, 300 million, and 200 million XRP.
Ripple relocked 400 million tokens, valued at $869 million, shortly after the XRP escrow was unsealed. Although unusual, this pattern may be a component of the platform’s monthly rebalancing.
The address received the tokens from two wallets before relocking the 400 million XRP. At 23:55 UTC, ‘rGKHDy’ sent 200 million XRP. An additional 200 million XRP was transferred by wallet ‘rHGfmg’ three minutes later.
The Change in Ripple’s Escrow Pattern
Ripple deviated from its customary monthly schedule of unleashing 1 billion XRP tokens from escrow earlier this year. Instead, the organization initiated internal relocations, establishing new escrows from its own XRP holdings. This peculiar pattern was identified in March and persisted in subsequent months.
CoinGape reported that Ripple partner SBI Holdings transferred $703 million in XRP to an internal wallet in a related development. Experts predicted a direct correlation between this action and the XRP escrow release, particularly in light of the recently established internal account, which indicated a strategic reallocation or custodial structuring.
Despite the recent relock and escrow release, the XRP token price has remained red, reaching a daily low of $2.1538. However, the token is still experiencing a 0.6% decline over the past 24 hours, despite its recent surge to $2.19.