Ripple Locks 800 Million XRP, Prices Still Dropping? How come?

Bittime - Ripple, a crypto payments company from the United States, has re-locked 800 million XRP tokens in its escrow wallet. This was done even though previously there had been deviations from the usual token release schedule.

Quoted from thecryptobasic, there are two posts on Twitter Whale Alert, a blockchain transaction tracking platform, documenting Ripple's latest escrow transactions. 

The transaction shows that Ripple re-locked 400 million XRP in two tranches, bringing the total to 800 million tokens.

It is worth noting that despite the deviation from the token release schedule, Ripple remains committed to its practice of locking back the majority of XRP released from escrow. This is done to maintain market stability and prevent price manipulation.

The Beginning of Successful Ripple Transactions

On April 1, precisely at 02:22 (UTC), Ripple successfully completed its first transaction. This transaction marked the locking of 400 million XRP in a wallet called Ripple 12.

Less than two minutes later, a second transaction occurred, with another 400 million XRP locked in the Ripple 13 wallet. By the time the transaction was made, the cumulative value was $487,578,258.

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Unusual Escrow Release Patterns

Ripple again showed an unusual escrow release pattern in April. This time, Ripple returned 800 million XRP tokens to escrow just 12 hours after previously unlocking 500 million XRP.

Typically, Ripple conducts a monthly escrow release on the first day of each month in the amount of 1 billion tokens. However, since February, Ripple's escrow release pattern has become irregular.

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Release of Escrow February and March 

In February, Ripple initially released 600 million XRP, but delayed the release of the remaining 400 million XRP until the end of the month.

In March, the company only unlocked 500 million XRP, thus falling short of its 1 billion XRP target.

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Causes of Irregularities

In both months, there were failed transactions during the initial escrow release, which allegedly hampered the escrow process.

This year, it was only in January that Ripple's signature escrow unlock pattern was seen. It is not yet known whether Ripple will follow February's pattern by releasing an additional 500 million XRP in April to complete the usual release of 1 billion.

Despite unlocking fewer XRP tokens this month, Ripple consistently returned 800 million XRP to escrow wallets.

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Impact on XRP

The price of XRP has experienced a significant decline in the last 24 hours. It was noted that the price of XRP broke through the lower limit of $0.6 and reached its lowest point at $0.5935. This decline is equivalent to 4% from the intraday high of $0.6172.

Ripple's attempt to relock a large amount of XRP after unlocking 500 million XRP seems unable to save this asset from falling in price.

It is worth noting that XRP's decline is in line with the broader crypto market bearish trend, led by Bitcoin.

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