Ripple, the blockchain payments company behind XRP, has re-locked 800 million XRP tokens into custody. The company re-locked the tokens in three separate transactions, Includes US$500 million, US$200 million and 100 million XRP respectively.
The move comes after the company launched a monthly issuance of 1 billion XRP on October 1. However, the price of XRP reacted negatively to the trading trend, Plunged more than 7% in the past day.
Ripple re-locks 800 million tokens after monthly escrow launch
Ripple has locked 800 million XRP tokens back into its escrow. According to data whale alerta prominent on-chain tracker, re-locked the token in three separate transactions.
First, Ripple had 500 million tokens re-locked during the transaction, worth approximately $314.84 million, as of 12:25 pm UTC.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 500,000,000 #ripplecoin ($314,847,284) hosted in #ripplehttps://t.co/HfohSK0OCG
— Whale Alert (@whale_alert) October 1, 2024
After about a minute, Company locks 100 million XRP tokens worth $62 million in its escrow account.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 200,000,000 #ripplecoin ($126,034,510) hosted in #ripplehttps://t.co/f8APQ8m1W3
— Whale Alert (@whale_alert) October 1, 2024
The last transaction involved the re-locking of 200 million XRP coins, worth over $126.03 million. Ripple completed its third transaction as of 12:27 UTC.
And the first transaction involved Ripple’s account “rDdXiA3M4m…UaAXCFWeCK“The company used the address”rKDvgGUsNP…2Not4co2op” for the second and third transactions.
The overall re-locking process began after Ripple completed its 1 billion monthly issuance on October 1. The re-locked tokens accounted for 80% of the tokens released in the month.
It is worth noting that on October 1, Ripple released 1 billion XRP tokens per month for custody. Whale Alert data shows that it also completed transactions for three different shards: 200 million, 300 million and 500 million XRP tokens.
Following Ripple’s latest unlocking and relocking pattern, only 200 million XRP coins have been added to the circulating supply.
XRP price reacts negatively to recent launch and re-locking process
especially, Ripple releases 1 billion XRP every month and recently started re-locking some of it. Although the company does not maintain the exact number of XRP coins during these processes, the pattern remains the same.
The re-locking process is part of Ripple’s strategy to maintain XRP price stability. It also helps the company manage overall XRP allocations and boost investor confidence.
However, the latest process affected the price of XRP. XRP fell to $0.5846 from its daily high of $6,336 as of October 1. XRP is trading at $0.5812, Down 5.60% in the past 24 hours. It has a market capitalization of $32.99 billion.
According to data from Coinglass, on-chain indicators are showing bearish sentiment towards XRP. Details Highlight XRP’s Long/Short Ratio at 0.924, with 48% Top traders hold long positions, while 52% hold short positions. Additionally, its future open interest fell by 4.5%, indicating declining investor interest.
Meanwhile, XRP’s price decline may stem from a bearish trend in the broader cryptocurrency market due to tensions in the Middle East. Bitcoin fell more than 4%, hitting $61,168, while Ethereum price hovered at $2,444, down more than 5%.
