As part of its plan to change the amount of XRP in circulation, blockchain payments company Ripple Labs Inc. moved an enormous sum of funds—800 million XRP—into a trust wallet. Since this change, the price of XRP has gone up by 4.61% in 24 hours, hitting $0.5126.
Even though a lot of Ripple token has been locked up, it has not been able to fully make up for the losses of the last week.
In the past month, the value of Ripple’s token has dropped significantly as market confidence has weakened. Even though the price has been trending up lately, Ripple token is still down more than 14% in the last month and 2.04% in the last week.
Market data information provider Whale Alert said that the lockup of 800 million Ripple token caused an enormous decrease in supply, which makes this price trend even more interesting. This lockup happened in three different parts. The first part was 500 million XRP worth $258,724,981. The second part was 100 million Ripple token worth over $51.8 million.
Ripple’s XRP Impact
In the third tranche, 200 million XRP, which is about $103,655,197, were locked up. The 800 million Ripple token that was put into the trust account was sent to Ripple Labs not long before these transactions were recorded.
The part Ripple Labs played in controlling the market volume of Ripple token is still a significant part of the case that is still going on with the US Securities and Exchange Commission (SEC). The lawsuit is now in the phase where the parties are negotiating possible solutions.
People in the market are paying close attention to how this case turns out because it could affect XRP’s market performance in the long run.
The suggested Ripple stablecoin asset could also change how much people prefer to use Ripple as a payment method in Ripple’s ecosystem. This stablecoin asset could make people less interested in XRP, but it could also change the long-term price picture for the digital currency.
