The ripple price locks up about 90 percent of the latest XRP escrow as the platform continues to follow a policy that holds most of the tokens from its escrow account as we are reading in the ripple price news.
In the latest monthly escrow, ripple returned 90 percent of the entire amount of 1 billion coins so now only 100,000 XRP remains at large since the coins moved back into the escrow wallet in the larger transactions. The largest transaction was noted to return 500,000 XRP so now the operations match a statement by Ripple about the idea to hold onto most of the XRP locked in escrow which has a calming effect on the market and possibly can establish a higher XRP price. XRP traded at $0.023 which is down by 14 percent due to the dramatic correction the previous week. In 2020, XRP marked high volumes, constantly more than $2 billion per day so XRP at those prices is seen as risky and could spike appreciation to higher price levels.
Ripple price locks up the price levels and selling of the altcoin was an issue in setting the market price for the asset. The coins awarded to the former CTO Jed McCaleb but it has a factor that floods the market with the coins. The analysis shows that Ripple is dependent on selling the coins for profitability and since RippleNet was in its early stages, the actual XRP assets are a major source of cash inflow. The CEO of ripple stated recently that XRP was an important factor for the bottom line of the organization and XRP was not a part of the idea to offer an alternative payment system:
‘’Well XRP is one source. I don’t know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing. We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.’’
Ripple still keeps adding banks and partners and boosts the usage of the on-demand liquidity on the RippleNET but so far, the usage of XRP is limited.
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