Ripple Shocks XRP Army With Unusual Transfers, Releases $3.28B In Minutes

On August 9, blockchain tracking services recorded a rapid sequence of escrow unlocks for XRP that occurred within minutes. Three transfers were logged, totaling 1 billion XRP. The largest single transfer was 500 million XRP, valued at approximately $1.64 billion, to an unknown wallet.

Two additional releases attributed to Ripple accounted for 500 million XRP, recorded as 100 million XRP (approximately $328 million) and 400 million XRP (nearly $1.31 billion). Together, these movements represent an approximate total value of $3.28 billion.

Xaif (@Xaif_Crypto), a popular figure in the XRP community, shared the news of the Escrow unlocks, as this occurred days after its usual schedule.

Unusual Escrow Activity

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On August 2, Ripple locked 700 billion tokens and did not record any further unlocks. The company often unlocks 1 billion tokens at the start of every month, and this is his daily work.

The sudden release of these tokens shocked many in the XRP community. In May, a similar occurrence shocked the market, as the company locked 700 million tokens while the 1 billion token release had not happened.

Although Ripple has now released its 1 billion tokens for August, one of the transactions references tokens unlocked from an unknown wallet; the community is left with more questions about Ripple’s escrow activity than usual.

Earlier in 2024, Ripple’s escrow mechanism faced irregularities that also raised questions. The unlock system failed for the first few months of the year, resulting in a smaller amount being unlocked at the beginning of each month.

When these errors occurred, Ripple always made up the difference, releasing the remaining tokens later in each of the affected months. However, the current anomaly appears not to have originated from a similar error with the escrow system, and the token unlock, although late, indicates that Ripple is adhering to its release schedule.

Market Impact and Next Steps

Large and concentrated transfers out of escrow can affect liquidity metrics and influence trader behavior. XRP is currently trading at $3.24, showing a slight decrease of 1.84%. However, the asset has an excited community, as it is up over 16% from last week. Market participants will closely monitor XRP’s short-term movements to determine the impact of the escrow unlock on price activity.

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