XRP Bounces Back After 1 Billion XRP Tokens Were Released

XRP Bounces Back After 1 Billion XRP Tokens Were Released

With 1 billion XRP tokens being introduced onto the market, Ripple’s XRP made a stunning comeback. This significant release comes after token introductions, with 500 million XRP tokens released. The event occurred at the same time as XRP’s price increased favorably, indicating a potential uptick in the worth of the cryptocurrency.

Ripple has explained that the move is part of its strategic strategy to control its coin supply and preserve market liquidity. An extra 400 million,  100 million, and 70 million XRP tokens, respectively, were made after the 500 million XRP token release.

At the time of writing, XRP’s price has risen by 1.55% to $0.5214 due to the introduction of these coins. This latest trend has triggered an increase in the XRP’s market performance, indicating fresh interest in and buying activity in XRP, which has recently traded in a comparatively lower price range within the past weeks.

The apparent improvement in the price level of XRP over the short term is accompanied by an increase in price trend over the long period of 2.2%, indicating some rebound for the cryptocurrency. This upward trend contrasts sharply with the previous month’s losses, during which XRP had difficulties and saw its value fall.

Ripple Gives Reasons For The Decision, Set To Release  55 Billion XRP

The release of the XRP tokens coincides with Ripple’s continued efforts to uphold market transparency and liquidity. Ripple seeks to strengthen its ecosystem and enable multiple use cases for XRP by deliberately putting tokens into circulation.

Ripple says it intends to use cases that include facilitating international payments and building collaborations with financial institutions. However, recent events, such as issuing more XRP tokens and a favorable price increase, indicate that XRP might be headed for a recovery.

The new release is said to accrue 1.87% of the total tokens already in circulation, which accounts for 53.3 46.69 billion XRP (remnants) belonging to Ripple and still stored in the escrow, to be distributed monthly till February 2027.

Ripple’s storage system uses an escrows smart contract method that locks the XRP token until certain stipulated conditions are met. Information shows that Ripple plans to release one billion XRP tokens on the first day of every month, releasing 55 billion XRP in the next 55 months.

Data Shows Steady Activities, Historical Patterns In The XRP Market

The strategy used by Ripple to distribute tokens aims to achieve a compromise between preserving liquidity and guaranteeing the long-term viability of XRP as a digital asset. The report states that out of the 200 million XRP held by the company, 100 million were spent on the 11th of September during the price crash triggered by the report of FTX’s liquidation.

Data from the Finbold platform says that 75 million XRP tokens were spent within six days on the 18th of September, and the tokens were released for circulation on the 22nd of September. Historical data on the previously released figures showed that the XRP ledger summed up a total supply of 100 billion XRP tokens since its official launch in 2012.

The data also showed that 20 billion XRP tokens were formerly shared with the company’s main teams and creators. However, Ripple’s company treasury is in charge of 80 billion XRP tokens and has promised to gradually release these coins rather than the traditional one-time release pattern.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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