The recent decline in the crypto market is making an impact on Ripple (XRP), the leading crypto asset of the month.
Ripple (XRP), the second most valuable cryptocurrency in the virtual market, has been declined in the value on a monthly basis. In the last 30 days, when there was seen a major drop of 10 to 20 percent in the price of BTC and other cryptocurrencies, Ripple (XRP) was able to maintain a constant level of $0.5, and this is quite surprising.
Escrow and its Effects
Ripple as a liquidity network provides a platform to all the financial institutions, and other banks to do payments with the lowest fee possible. Therefore, it becomes necessary to have a large supply of XRP in order to operate the Ripple blockchain network.
EOS which has many rules and regulations on its protocol that helps in disallowing the investors from holding onto EOS for a longer period of time without actually using it. Similar to it, XRP needs some XRP in the process in order to allow non-stop payments of financial institutions.
Brad Garlinghouse, who is the CEO at Ripple Labs, in 2017, stated that XRP being in the thirty party account, distributed by Ripple to the public.
He said that their latest feature Escrow allows firms to secure crypto XRP for a particular period of time, unless and until they meet some desired conditions. Further by giving an example, he continued by saying Escrow provides a facility to the XRP sender to put some terms and conditions on when the payment can be completed. This helps in securing the payment until the due date.
How it all Happen?
In the past week, the XRP moved from Ripple Distribution wallet to an unknown wallet is worth around $16 million. This is increasing the quantity of XRP in the market. If the supply of cryptocurrency increases in the market, and the demand remains the same, then it leads to impact the value and price of that cryptocurrency negatively.
The price of XRP dropped from $0.48 to $0.41, whereas, in the last 24 hours, the asset recovered from $0.41 to $0.43 which led to a daily loss against USD to up to 0 percent.