Ripple Labs Inc., an American blockchain payments company, has released over 1 billion XRP tokens from escrow, signaling a positive start for the digital currency in October. The XRP release is being done in four different tranches, with the largest release featuring 500 million tokens. This move has had a positive impact on the market, with XRP’s price increasing by 1.55% to $0.5214 at the time of writing. This is a significant development for XRP, as the digital currency has faced challenges in the market recently.
Despite ongoing legal battles between Ripple and the United States Securities and Exchange Commission (SEC), which have created uncertainties for XRP, a positive start to October could pave the way for a bullish trend overall. While short-term price levels show optimism, the mid-term price trend also demonstrates some positive signs, with XRP’s long-term price up by 2.2% and recovering from previous losses.
XRP’s growth is underpinned by its fundamental protocols and roles in the On-Demand Liquidity (ODL) program and the XRP Ledger (XRPL). It remains the payment token of interest in the ODL program and holds a prominent position in the XRPL. Moreover, with more tokens expected to be released from escrow in line with XRP’s historical trends, there will likely be sufficient circulating liquidity to meet market obligations. Overall, this release of XRP tokens from escrow marks a positive development, offering potential opportunities for growth in the digital currency.
