XRP Price Plummetes Amid Ripple’s Relock of 800 Million Tokens
Ripple, the blockchain payment company behind XRP, has relocked 800 million XRP tokens in escrow. The firm relocked the coins in three separate transactions, comprising $500 million, 200 million, and 100 million XRP, respectively.
This move came after the firm's monthly release of 1 billion XRP on October 1. However, XRP's price reacted negatively to the transaction trend, plummeting by over 7% within the past day.
Ripple Relocks 800 Million Tokens After Monthly Escrow ReleaseRipple has relocked 800 million XRP coins in its escrow. According to data from Whale Alert, a prominent on-chain tracker, the company relocked the coins in three separate transactions.
Firstly, as of 12:25 pm UTC, Ripple relocked 500 million coins worth about $314.84 million during the transaction period.
- Whale Alert (@whale_alert) October 1, 2024
About a minute later, the company locked 100 million XRP tokens worth $62 million in its escrow account.
- Whale Alert (@whale_alert) October 1, 2024
The last transaction involved the relock of 200 million XRP coins worth over $126.03 million. Ripple completed this third transaction as of 12:27 UTC.
While the first transaction involves Ripple's account rDdXiA3M4m...UaAXCFWeCK," the firm used the address rKDvgGUsNP...2Not4co2op" for its second and third transactions.
The overall relocking process began after Ripple completed its monthly release of 1 billion on October 1. The relocked coins represent 80% of the tokens released for the month.
Notably, on October 1, Ripple released its monthly 1 billion XRP tokens for escrow. Whale Alert data shows it also completed the transactions in three different splits: 200 million, 300 million, and 500 million XRP tokens.
Following Ripple's latest unlock and relock pattern, only 200 million XRP coins were added to the circulating supply.
XRP Price Reacts Negatively To Recent Release And Relocking ProcessesNotably, Ripple releases 1 billion XRP monthly and recently started relocking some of them. Though the firm has deviated from maintaining the exact amount of XRP coins in these processes, the pattern remains the same.
The relocking process is part of Ripple's strategy to maintain XRP's price stability. It also helps the firm manage the overall XRP distribution and boosts investors' confidence.
However, the latest process has impacted the price of XRP. From its daily high of $6336 as of October 1, XRP slipped to $0.5846. XRP trades at $0.5812, reflecting a 5.60% decline over the past 24 hours. It boasts a market cap of $32.99 billion.
According to data from Coinglass, on-chain metrics show a bearish sentiment for XRP. The details highlight XRP's Long/Short ratio at 0.924, with 48% of top traders holding long positions while 52% have short positions. Also, its future open interest dropped by 4.5%, indicating a decline in investor interest.
Meanwhile, XRP's price drop could stem from the bearish trend in the broader crypto market due to tension in the Middle East. Bitcoin has dropped by over 4% to hit $61,168 while Ether's price hovers at $2,444, indicating an over 5% decline.
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