Ripple has unlocked one billion XRP from its escrow wallet today. It represents the supply allotment for the month in accordance with its pre-determined schedule.
At current valuations, this amounts to around $225 million. XRP is currently in a tough position price-wise, resting at a support level of around $0.20. Should the support zone falter, it could spell trouble for the third-largest digital currency.
Ripple Unlocks December XRP
In December of 2017 Ripple officially announced that it would be putting 55 billion XRP into an escrow wallet and would release 1 billion XRP every month in order to accelerate the XRP ecosystem.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 1,000,000,000 #XRP (225,092,032 USD) unlocked from escrow at Ripple Escrow wallet
— Whale Alert (@whale_alert) December 1, 2019
This month’s release of funds means that another $220 million worth of XRP is available for Ripple to use as they see fit. Considering the bearish price movement in cryptocurrency markets and a rather unpleasant year for altcoins, every fund unlocking brings in a new wave of fear for XRP holders.
How Will the XRP Price React?
The release of escrow funds has often been associated with a looming price downfall since the XRP can be distributed onto the market. This month’s funds release brings the circulating supply close to 44 billion.
While some altcoins have had some sort of relief rally, XRP has remained dormant over the past month trending downwards. Even Ripple’s annual Swell conference wasn’t a strong enough catalyst for XRP’s price to show positive signs.
There have been minor positive developments recently for Ripple, however. Ripple finalized a $50 million investment in MoneyGram, which is supposed to drive forward the adoption of XRP for international transfers.
At the same time, XRP has also made negative headlines as Elliptic discovered $400M in illicit XRP transactions. As reported by BeInCrypto, Elliptic has found hundreds of XRP accounts linked to illegal activities, and 0.2% of all XRP transactions were found to be linked to criminal activity and sanctioned entities.
Images courtesy of Twitter.
