The XRP token is trading in the red after the cryptocurrency market capped off its best month of the year
San Francisco-based blockchain payments company Ripple has issued 1 billion XRP tokens from two escrow wallets, according to data provided by Bithop’s XRP Ledger Explorer.
The XRP is down 1.93% over the past 24 hours, according to data provided by CoinMarketCap. The token is currently trading at $0.38 on major spot exchanges. Back in 2017, the company locked 55% of the total supply of XRP in a series of escrows. It capped the number of new tokens that can be brought into circulating at 1 billion XRPs per month.
It should be mentioned that XRP’s recent weakness has been linked to Bitcoin’s inability to gain a foothold above $24,000 rather than the mundane unlocking of a new coin.
Notably, Ripple returns the vast majority of the tokens it has issued back to its escrow. Due to the predictability of the unlocking process that takes place on the first day of every month, it has no effect on the price of the XRP token. Despite common misconceptions, most of those tokens do not flood cryptocurrency exchanges.
As reported by U.Today, Ripple sold $408 million worth of XRP in the second quarter. The increase in sales was mainly attributed to the growing popularity of the On-Demand Liquidity service.
In other news, Ripple co-founder Jed McCaleb finally sold his remaining XRP tokens last month, meaning he will no longer be able to exert additional selling pressure on the sixth-largest cryptocurrency.
The total circulating supply of XRP currently stands at 48.3 billion tokens, according to data provided by CoinMarketCap.
