1 Billion XRP Tokens Just Released from Ripple’s Escrow System

On June 1st, Ripple unlocked and released 1 billion XRP tokens from its escrow system, according to the predetermined schedule.

Ripple established the escrow system in December 2017 with the aim of bringing stability to the XRP market. Ripple locked away a total of 55 billion XRP tokens in escrow, with each escrow holding 1 billion XRP. These tokens are set to be released monthly over a period of 55 months.

The impact of these monthly releases on the price of XRP remains a topic of debate. Many argue that the predictable nature of the releases minimizes their influence on the market. However, in parallel with this release, XRP has been gaining attention in the cryptocurrency landscape.

According to a report from crypto analytics platform Santiment, XRP is currently the most trending asset in the market. This surge in activity may indicate a shift in price behavior, although accurately predicting price movements in the volatile crypto market is notoriously difficult.

Amidst the positive market indicators, speculation has been circulating about XRP potentially reaching the $1 mark. Notably, prominent crypto trader DonAlt has contributed to these discussions. The token last reached this price level in November 2021. The recent increase in address activity has fueled optimism about XRP’s potential to outperform the broader crypto market. However, concerns linger regarding Ripple’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) regarding the classification of XRP as a security.

The outcome of the lawsuit, expected in the coming weeks, could significantly impact the long-term trajectory of the XRP token, as noted by John Deaton, a lawyer supportive of XRP. Currently, the price of XRP stands at $0.51, and despite the recent upswing and buzz, the token remains over 80% below its all-time high recorded in January 2018. Presently, XRP holds a market capitalization exceeding $26 billion, with a 24-hour trading volume surpassing $1.6 billion.