why has the XRP price fallen?

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While this was great for most cryptocurrencies, it was not the case for some coins like Ripple (XRP). It started the day with a 2% drop before assuming the current gain of about 1.96% at the time of writing.

Ripple has been on a rollercoaster and no wonder the general price change for the month and week seems to be so low while other currencies are making double, triple and even quadruple price changes.

In this article, we will focus on some of the issues affecting Ripple price.

Why has the XRP price fallen?

While Ripple has seen some price increases lately, in most cases the gains have erased as quickly as they were made. Today, XRP started the day with a decline before turning green with an increase of about 1% at the time of writing.

But what are the factors influencing the price of Ripple’s token, XRP? Why isn’t the price rising even at a time when investors feel like it’s altcoins season? This article attempts to explain what could be causing the decline in XRP price and has focused on the most recent development which is the recent withdrawal of 1 billion XRP coins.

Withdrawal of 1 Billion XRP Funds

Today, Ripple DLT service provider pulled a whopping 1 billion XRP coins from escrow on the first day of a new month to add some of them to its circulating supply.

It is important to note that Ripple has had a habit of withdrawing a lump sum of XRPs from its Escrow account on the first day of every month to put more coins into circulation. While the move has always had a positive impact on the price of XRP, this month was different and the process negatively impacted the market price. Ripple fell 2% earlier today immediately after the withdrawal was done.

WhaleStats, the largest crypto fund tracker, confirmed that Ripple withdrawal was performed in its escrow in two installments of 500 million XRP each. According to reports from WhaleStats and details from Ripple, the withdrawal was made in the early morning hours today at a cost of approximately $811.39 million.

Following the news, Ripple’s market cap dropped to $39.3 billion and lost its 6th position to Solana.

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