As the crypto community welcomes the dawn of January 1, 2024, Ripple, a powerhouse in the enterprise crypto solutions space, made headlines with its meticulously planned release of 1 billion XRP from escrow accounts. Designed for controlled market impact, this monthly ritual unfolded in three strategic transactions and brought a significant liquidity boost to the cryptocurrency space.
Ripple is realizing its monthly release
The planned release kicked off with a whopping tranche of 100 million XRP, worth an impressive $61.14 million, coming out of Ripple’s highly secure vaults. Following this, a more significant wave of 400 million XRP flooded the market, estimated at a staggering $244.57 million. The grand finale witnessed a massive raise of 500 million XRP, equivalent to $305.71 million flowing into the crypto space.
Ripple’s implementation of the escrow system in late 2017 was a strategic move aimed at ensuring controlled and measured distribution of XRP tokens while prioritizing market stability. The system, which consists of 55 billion tokens distributed across escrow accounts protecting 1 billion XRP each, spans 42 months and will potentially be completed by mid-2027. This meticulous practice serves many purposes in the volatile crypto market. By adhering to a predetermined schedule, Ripple not only promotes stability but also instills trust among investors and stakeholders. Controlled release reduces the risk of surge flows, contributes to a more predictable supply of XRP, and increases overall market stability.
Record transactions on Ledger
As 2023 comes to a close, XRP Ledger (XRPL) has set a new record with a notable increase in transactions and overall activity. According to XRPScan, XRPL hit an all-time high of 6.8 million transactions per day on December 30, surpassing the previous record of almost 5 million transactions in November 2021. The increase in transactions is attributed to the increasing utility of the XRP Ledger and recent developments in the XRPL ecosystem. In particular, the introduction of the “XRP Script” project led to a significant increase in transactions, with participants writing “XRP20” data, which resembles texts of the Bitcoin Blockchain, to XRPL using satoshi.
This initiative led to a significant increase in daily network transactions, reaching 4.11 million on December 26 from the usual 1.2 million. The number of new daily accounts activated also increased from 2,200 to over 20,000 due to network congestion caused by the inscriptions. XRPL developer Wietse Wind highlighted that the XRPL mainnet is undergoing a free TPS (transactions per second) test due to increased network congestion. XRPScan found that a significant portion of the increase in trading volume, particularly on December 26, was attributed to the creation of thousands of new accounts.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.