According to blockchain monitor Whale Alert, on May 3, Ripple released 1 billion XRP from its escrow holdings in three major transactions. This marks a shift in Ripple’s usual schedule, which previously saw these movements happen on the first day of each month.
The XRP transactions were divided into transfers of 200 million, 300 million, and 500 million tokens. According to blockchain evidence, three XRP transactions were completed through a single wallet, and the 500 million XRP payment received direct initiation from Ripple.
The multiple transfer scheme allows Ripple to gradually control supply in the market while staying within sustainable levels.
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However, this month’s release came with a notable change. Unlike past practices, where Ripple would lock 700 million XRP after releasing 1 billion, the company now locks this amount before releasing the remaining balance.
Ripple initiated the pre-escrow process on the first day of the month to show its modified approach to managing the XRP supply.
New Escrow Strategy Introduced to Regulate Market Impact
By securing 700 million XRP ahead of the main release, Ripple may be aiming to stabilize market expectations. This adjustment signals a more cautious approach to maintaining XRP’s liquidity and value.
The shift shows Ripple’s effort to support the token’s ecosystem while continuing its operational funding and institutional partnerships.
A new timeframe for full release began with initiating delays until the third day of each month. Ripple has gained the flexibility to alter its operational cycles through this change, providing greater scope to respond to market conditions.
The split transaction method is part of Ripple’s controlled strategy, which aims to minimize immediate price changes in XRP’s market value.
The unlocked XRP pool enables Ripple to fulfill two functions while supporting its Ripple Payments network activities. Through the allocations system, institutional partners get funding for on-demand liquidity support and relevant financial solutions.
Conclusion
Ripple’s latest release of 1 billion XRP came with a strategic twist that redefines its escrow policy. By locking a large portion of XRP in advance and delaying the release date, Ripple is tightening control over its token’s flow into the market.
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