Ripple, the blockchain organization responsible for the XRP digital currency, recently released 500 million XRP tokens from its escrow accounts. This unexpected move, which amounts to circa $300 million at the time, has stirred up uncertainty and speculation among members of the XRP community regarding Ripple’s motives and potential effects on the XRP market.
XRP Escrow Release Raises Eyebrows
Typically, Ripple releases a certain amount of XRP from its escrow accounts each month. However, the recent unlocking of 500 million XRP in two separate transactions deviates from this regular pattern.
On April 12, Whale Alert reported that the initial transaction released 200 million XRP, valued at $122.63 million, followed by a second transaction unlocking 300 million XRP, worth $183.89 million. This action has sparked curiosity among numerous XRP holders and community members regarding the rationales behind the release.
The origin of the tokens adds to the mystery. Both transactions originated from an address associated with Ripple since 2017 but that had been inactive since 2021.
The re-emergence of this dormant address for such a substantial transfer has raised eyebrows and fueled speculation about Ripple’s plans for the released XRP. Compounding the uncertainty is Ripple’s lack of official communication regarding this unusual activity, leaving the community to speculate about the company’s intentions.
The sudden release of 500 million XRP had an immediate impact on the cryptocurrency’s price. XRP experienced a 10.18% decline in price, raising concerns among holders and traders about the short-term direction of XRP’s price. However, despite the drop, some analysts remain optimistic about XRP’s future, pointing to its stability above and the potential for a breakout soon.
XRP Price to $1,000?
A recent X post predicted that XRP could surge to $1,000 within five to ten years. The market trader ‘BarriC’ based this forecast on the influx of new money into crypto, citing the potential entry of around $400 trillion of personal wealth and institutional investments into cryptocurrencies.
The market trader highlighted the impact of Spot Bitcoin ETFs on Bitcoin’s price surge, suggesting that a similar trend could benefit XRP once institutional investors show interest in a spot XRP ETF.
He dismissed skepticism about XRP reaching $1,000, arguing that such doubts imply a stagnation of the entire crypto market, which he finds unlikely given the sector’s ongoing growth and evolution.
BarriC expressed confidence in Ripple’s continued success, suggesting that failure on their part would be the only obstacle to XRP reaching $1,000. Despite acknowledging that many may find it hard to envision such a price for XRP, he compared this sentiment to the disbelief surrounding Bitcoin’s rise to $74,000 from just $200 in 2016.