While this has been good news for most cryptocurrency, it hasn’t been so for Ripple. It began the day with a drop of 2% before it surged to 1.96% at the moment of writing.
Ripple’s rollercoaster ride has been a wild one. It is no surprise that the overall price change for the week and month seems so low, while other currencies are making triple, quadruple and even quadruple price fluctuations.
This article will concentrate on Ripple price issues.
Why did the XRP prices fall?
Ripple has seen some price gains recently, but these gains are usually erased just as fast as they were made. Today’s XRP saw a drop in price before it turned green, with a gain of around 1% at the time of writing.
But what are the factors affecting the price of Ripple’s token, XRP? Why is the price not rising even at a time when investors feel it’s an altcoins’ season? This article explains why the XRP price has fallen. It focuses on the latest development which was the withdrawal of 1,000,000 XRP coins.
Withdrawal 1 billion XRP funds
Today Ripple DLT service provider pulled a staggering 1,000,000 XRP coins out of escrow on a first day of a month to increase the circulating supply.
Ripple used to routinely withdraw a lump sum XRPs from Escrow every month in order to inject more coins into circulation. While the move has always had positive effects on the price of Ripple, this month it has had a negative impact upon its market price. Ripple fell by 2% today, immediately following the withdrawal.
WhaleStats, the largest cryptocurrency fund tracker, confirmed that Ripple withdrew in its escrow in two installments totaling 500 million XRP each. WhaleStats’ reports and Ripple’s details, the withdrawal was completed in the early morning hours at an approximate cost $811.39 million.
Following the news, Ripple’s market capitalization dropped to $39.3 billion losing its 6th position to Solana.