Skip to content

Ripple Price jumped 13% after the company cashing 55 billion XRP

Get trading recommendations and read reviews on for only $ 39 a month

The price of the ripple has seen a 13% rise after the start of fintech revealing that He had deposited his 55 billion XRP chips.

Rally price rally 13 percent

The price of the ripple had spent most of the week dropping from $ 0.254 on December 1 to $ 0.222 this morning. However, shortly before 01:00 UTC, the price of the ripple climbed up to $ 0.272 before capping at a current value of $ 0.250 – a 12-hour gain of almost 13 percent.

XRP Price Chart | Source: CoinMarketCap

Ripple's daily trading volume was close to $ 700 million, nearly half of which was concentrated on South Korean trade in Bithumb, Coinone, and Korbit.

<img class="size-full wp-image-126053" src="" alt=" Price of a ripple "width =" 937 "height =" 273 "/>

Source: CoinMarketCap

Ripple Escrows 55 billion XRP

The apparent rationale for the recovery is the announcement that Ripple – the fintech start-up behind XRP – had formally placed 55 billion of its estimated 61.8 billion XRP in escrow. Each month, 1 billion tokens will be unlocked for the use of Ripple, and all unused tokens will be handed over to third parties.

This development eliminated the threat that Ripple could flood the market with XRP, effectively crushing the price. Although highly improbable, this scenario was possible since Ripple holds almost twice as much XRP as it currently is. Now, XRP investors know for sure the pace at which new chips will enter the market, allowing them to better establish a fair value price for the token.

"By getting the lion's share of the XRP, people can now mathematically ascertain the maximum supply that can enter the market.While Ripple has turned out to be a responsible manager of the XRP. XRP supply for nearly five years – and has clearly proven itself by investing in and supporting the XRP ecosystem – this blockage eliminates any fear that Ripple may flood the market, what we have emphasized before is a scenario that would be bad for Ripple!, "the company wrote on his blog.

Ripple had announced his intention to block these chips months ago, so the news had already been rated a bit. Nevertheless, the execution of the escrow provided the price of rippling with another bump, allowing the fourth largest market capitalization to rise to 9.7 billion.

See also  Another report links Bitfinex to the Noble Bank of Puerto Rico