Ripple Locks 700M XRP in Escrow, XRP Price Dips 1.87%

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As per a latest tweet from Whale Alert, Ripple has locked 700 million XRP tokens in escrow. As part of its regular escrow program, Ripple releases 1 billion XRP each month to keep the token supply predictable. These released tokens are used for institutional sales, operational costs, and other purposes.

However, Ripple didn’t release its usual 1 billion XRP from escrow on April 1. Instead, it moved 1 billion XRP between wallets, locking 700 million back in escrow. This surprise move caused speculations about possible changes in supply.  Since, XRP’s price has dropped 1.87% to $2.09. 

Notably, Ripple regularly returns a portion of its XRP tokens to escrow. Last month, instead of releasing the usual one billion XRP tokens, Ripple locked 700 million XRP back into escrow. These tokens were created from surplus XRP in the company’s accounts.

Ripple CEO Brad Garlinghouse recently hinted that the company might cut back on XRP sales in the future, which could help ease the pressure on the token’s price. 

Ripple still holds over 40% of the total supply of all XRP tokens. Last month, the company withdrew its cross-appeal against the U.S. SEC after the agency agreed to request the court drop the ban that had stopped Ripple from selling XRP to institutional clients. This ban was part of Judge Analisa Torres’s final ruling from last August.

XRP’s price hasn’t been affected by Ripple’s recent actions and remains mostly stable. The token is down by mere 0.2% in the last 24 hours, since XRP usually shows little price change with escrow-related news.