- XRP lost its previous gains after the commencement of Ripple’s 1 billion token unlock event this month and the confirmation from Bitwise regarding its application for an ETF centered around the token.
XRP recently reached a price level not seen since March of this year, hovering around $0.66. However, it experienced a decline in momentum today due to Ripple’s token unlock event. This occurred even after Bitwise submitted its application for an XRP exchange-traded fund (ETF).
XRP Price Performance
A notable sell-off has diminished XRP’s recent gains in light of two significant events in its ecosystem. As of 8:45 AM UTC on Wednesday, the token had already lost approximately 4% of its value on the daily chart, striving to hold its price above the $0.60 mark. Over the past 24 hours, the digital asset saw a drop from a high of $0.6336 to a low of $0.5843.
During this period, trading volumes surged by approximately 63%, with $2.79 billion worth of the cryptocurrency transacted across DeFi wallets. This recent activity has reduced the market cap of its 56.56 billion token supply to $34.04 billion.
Despite today’s decline, XRP has shown robust rebound in longer timeframes, exhibiting an increase of about 2% in a week, 9% in a month, and 15% over the past year.
XRP continues to remain significantly below its all-time high of $3.84 attained seven years ago. Nonetheless, XRP enthusiasts and the wider crypto community remain hopeful for the token’s eventual recovery toward this year’s peak of $0.74.
Ripple’s XRP Token Unlock
Ripple, a prominent provider of digital asset infrastructure, gradually releases tokens held in escrow to maintain XRP’s stability. Each unlocking event is scheduled to provide predictability in the market and to prevent supply shocks that could destabilize the token economy.
Since 2017, Ripple has kept 55 billion XRP in escrow, releasing 1 billion XRP each month. On October 1, Whale Alert reported that the company transferred 500K XRP valued at $310.649 million.
After confirmation of this event, the associated crypto asset saw a temporary spike yesterday. However, despite the careful planning of the event, token unlock events generally lead to short-term bearish sentiment. The supply often surpasses demand, resulting in price declines.
Bitwise ETF Application
As the crypto community looks forward to the upcoming altcoin season this “Uptober,” there is additional optimism surrounding XRP. Last Monday, Bitwise confirmed it had filed an application for a spot XRP ETF with Delaware’s Division of Corporations.
While Bitwise has not yet formally filed with the Securities and Exchange Commission (SEC) for its XRP-based exchange-traded product (ETP), this move is generating considerable optimism regarding the future of its underlying crypto asset. This announcement follows Ripple CEO Brad Garlinghouse’s comments suggesting the introduction of an XRP ETF is “simply inevitable.”
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