Unexpected Market Response as 400 Million XRP (XRP) Released from Escrow: Crypto Update

• A recent whale transaction involving 400 million XRP, worth approximately $213.9 million, has been unlocked from an escrow wallet.
• The transaction, processed on the Ripple blockchain, is causing a stir within the XRP community, with some interpreting it as a dump, while others see it as a sign of impending inflation.
• Despite the significant unlock, the XRP market has remained relatively stable, with the price of XRP increasing by 1.93% to $0.5303.

A recent whale transaction involving 400 million XRP, worth approximately $213.9 million, has been unlocked from an escrow wallet, causing a stir within the XRP community. Despite the significant unlock, the XRP market has remained relatively stable.

Ripple’s “lock” and “unlock” of escrow

The transaction, as reported by Whale Alert, had a nominal fee of 0.0001 XRP. The Ripple escrow system, launched in December 2017, is designed to ensure the predictability and stability of the XRP market while providing liquidity. On May 3, Ripple Labs moved 800 million XRP into an escrow wallet in three tranches to rebalance the circulating supply of the digital currency. This did not lead to a recovery of losses from the previous week. Ripple’s escrows typically unlock approximately 1 billion XRP each month, with any unspent portion returned to escrow. The recent unlocking of 400 million XRP has sparked speculation about the XRP market’s trajectory in the coming days.

Market response to 400 million XRP unlock

Despite the sizable unlock, the reaction within the XRP market has been relatively calm. ... Read the full article for FREE at COINOTAG!