As part of Ripple’s strategic approach to enhance liquidity in the crypto market, Ripple Labs has released one billion XRP tokens from escrow in a series of three transactions, per data insights from Whale alerts.
Ripple unlocking tokens from escrow has been in practice since 2017, this is part of the strategy employed by the company to prevent the devaluation of digital currency.
Meanwhile, the XRP token is majorly the bone of contention between Ripple Labs and the US Securities and Exchange Commission (SEC) in the ongoing Ripple-SEC case.
The effect of the one billion XRP tokens released from the escrow only has a minute effect on the crypto market. At press time, XRP is trading at $0.4835, that’s about a $0.12 reduction in value in 24 hours. This minor price dip occurs amidst a general price recovery observed across several top digital currencies. Given the current market trends, XRP may potentially leverage the prevailing bullish momentum and reverse its course in the near term.
While some may perceive the release of XRP as a potential issue, it could also present an opportunity for investors to accumulate more of the asset in the short term.
