In a recent turn of events, Ripple Labs, the backing entity for the cryptocurrency XRP, generated significant excitement among global cryptocurrency enthusiasts by locking a substantial amount of XRP in escrow. Data from the blockchain tracker Whale Alert revealed a remarkable lockup of 800 million XRP across three transactions.
Amidst these transactions, pro-XRP lawyer Bill Morgan provided valuable insights into the changing sentiment surrounding Ripple’s escrow locks. As Ripple locked these massive amounts of tokens, the price of XRP experienced an uptick, aligning with the company’s strategic move. Derivatives data also suggested implications for XRP’s recent price surge, particularly crossing the ₽56.88 mark, attracting worldwide attention.
Taking a closer look at Ripple’s escrow lock, Whale Alert’s data showed that the transactions occurred on March 2, with Ripple locking 200 million, 100 million, and 500 million XRP coins, respectively, in escrow. These actions aimed to regulate and potentially increase XRP’s supply.
Bill Morgan’s analysis highlighted a shift in sentiment regarding Ripple’s escrow lock, indicating a community effort to establish XRP as a global reserve currency, contrary to previous concerns among XRP holders.
As a result of Ripple’s escrow lock, the price of XRP experienced a notable increase, currently trading at ₽57.82 with a 7.73% uptick over the past 24 hours. This surge in price was accompanied by a rise in open interest, suggesting significant new investments entering the market. However, decreased volume and OI-weighted funding rates hinted at a possible consolidatory phase ahead following the impressive price surge.