Ripple’s Monthly XRP Escrow Release and Its Impact on XRP’s 5-Year Price Performance

Ripple’s Monthly XRP Escrow Release and Its Impact on XRP’s 5-Year Price Performance

Crypto News – Legal expert Bill Morgan has challenged the prevailing belief that the monthly release of XRP from Ripple’s escrow accounts has been a contributing factor to the lackluster performance of XRP’s price over the past five years. The discussion surrounding XRP’s underwhelming performance over this extended period was ignited when a crypto enthusiast shared a comparative analysis of XRP’s price in 2018 in relation to other prominent cryptocurrencies.

According to data from authoritative sources like CoinMarketCap, XRP was trading at approximately $0.5 in November 2018. Presently, XRP’s price hovers around $0.6021, indicating a modest growth of only 20% over the past five years. In stark contrast, rival digital assets such as Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) have experienced gains of no less than 400% during the same timeframe. To illustrate, BTC was priced at approximately $6,420 in November 2018 and now commands a value above $37,700, marking an impressive 487% increase. Similarly, ETH and ADA, trading at $210 and $0.075 five years ago, have surged to $2,020 and $0.378, respectively.

In response to XRP’s lackluster performance over half a decade, a user named Van Hasen placed blame on Ripple, the payment company closely associated with XRP. Hasen alleged that Ripple releases a staggering $3 billion worth of XRP to its business clients on a quarterly basis, positing that this massive token release has adversely affected XRP’s performance.

However, Attorney Bill Morgan presents a counterargument. He first clarified that Ripple does not release $3 billion worth of XRP per quarter. Instead, Ripple consistently releases one billion XRP units each month from its escrow account, often subsequently locking back approximately 800 million of the tokens that were released.

Furthermore, Morgan asserts that a monthly release of 200 million XRP tokens from Ripple’s escrow has a relatively minimal impact when considering XRP’s daily trading volume, which consistently exceeds one billion. Additionally, he points out that other tokens, such as Solana (SOL), also undergo scheduled token releases, akin to XRP’s approach, and yet these releases have not negatively impacted their market prices over the past five years.