#BTCtrade
For the past few weeks, the price of $XRP has been relatively stable around US$ 2.10. This is because Ripple maintains the Price Stability of $XRP Through Supply Management
Every month, Ripple releases 1 billion XRP from escrow, but only sells a small portion, usually through over-the-counter (OTC) transactions. The rest is returned to escrow.
This strategy aims to keep the price stable. For example, if Ripple wants to send US$ 200 million using 100 million $XRP, then each coin must be worth US$ 2. If the price rises too much, Ripple can sell more. Conversely, if the price drops too far, they can buy back. This way, price movements can be controlled.
However, this condition could change if demand from institutions begins to increase. Some driving factors, such as the possibility of more favorable regulations from the American government (SEC), the potential for an XRP ETF, and the growth of tokenized digital assets on the XRP Ledger network.
If institutions start buying $XRP in very large quantities, Ripple may no longer be able to maintain price stability. If demand exceeds supply, prices could rise rapidly.
On the other hand, recent data shows that the number of whales (large holders) of $XRP continues to grow. Currently, more than 300,000 wallets hold at least 10,000 $XRP, up from around 280,000 in December 2024.
This massive accumulation could be a signal that large investors are preparing for a price surge. They are buying while the price is still low and waiting for the right momentum.