The release of Ripple’s Q3 2024 Markets Report on November 1 has sparked renewed discussions within the cryptocurrency community, particularly regarding the company’s XRP escrow holdings. This report highlights a decrease in Ripple’s escrow balance from 39.5 billion at the end of Q2 to 38.9 billion in Q3. The escrow mechanism is programmed to release one billion XRP each month over the next 42 months, which has significant implications for the market.
User Responses Reflect Differing Views on XRP’s Price Impact
As the legal battle between the SEC and Ripple continues, anticipation is building among investors about the potential market implications, especially concerning XRP’s price. Some members of the XRP community are wary that the scheduled escrow releases might exert downward pressure on XRP prices. However, this concern has been met with counterarguments from XRP-supporting legal experts.
Crypto lawyer Bill Morgan recently addressed these concerns in a social media post, clarifying misconceptions about the XRP escrow’s influence on the price of XRP. He responded to allegations suggesting that the SEC’s lawsuit against Ripple perceived the escrow as a mechanism for boosting prices. Morgan refuted this claim, asserting that the escrow does not suppress XRP’s price as some have speculated.
The community’s responses to Morgan’s comments are varied. One user, @WelcomeNowLeave, sought a detailed explanation of how escrow holdings affect both retail investors and financial institutions. In contrast, another user, 박탱고 (@BagtaengG), argued that the escrow volume does indeed suppress XRP’s price, suggesting that significant holders may be overlooking this impact.
Morgan staunchly denied that escrow holdings apply downward pressure on XRP prices, reinforcing Ripple’s position that the escrow is a demonstration of responsible fund management rather than an attempt at price manipulation. This ongoing discussion underscores the persistent debates within the XRP community regarding the impact of Ripple’s holdings on market prices.
XRP Current Market Snapshot
Beyond the escrow debate, the unresolved SEC vs. Ripple case continues to heavily influence XRP’s price dynamics. Following the Programmatic Sales ruling in July 2023, XRP experienced a surge, reaching $0.9327 as U.S. exchanges reinstated it. However, subsequent developments, such as the impending SEC appeal, led to XRP dropping below $0.50 in August, and the October 2024 appeal filing further pushed it below $0.60, where it has remained stagnant.
An SEC victory could potentially lead to XRP’s delisting in the U.S., which could severely impact its market presence and diminish prospects for an XRP spot ETF. Investors are keenly awaiting the SEC’s opening brief, scheduled for release on January 15, 2025, just days before the presidential inauguration, to assess the potential ramifications of the appeal.
