Ripple re-locked XRP tokens to support the price in response to increased institutional interest.
Excessive supply could harm the market
Ripple’s decision to refund a significant portion of unlocked XRP tokens each month has sparked debate about its potential impact on the token’s value. This move was seen as a strategic effort to protect the price of XRP against concerns about low demand voiced by user Alter Diego. Legal expert Bill Morgan defended Ripple’s move, emphasizing that excessive token supply could potentially harm the market.
After this development, which was called the “Second Victory” when Judge Analisa Torres rejected the SEC’s appeal, it was noted that although the price of XRP fell to $ 0.49, token sales and institutional entries continued to increase. This trend has shown that the market is responding positively to Ripple’s strategy, regardless of the ongoing controversy.
Innovative projects
The XRP community, including several developers, remained optimistic about the token’s future. Price fluctuations have been attributed not only to court decisions but also to ongoing network development and market forces. The community stated that they are particularly excited about innovative projects being developed on the network, which they believe will increase the value of the token and support its long-term prospects.
These projects included building structures for new On-Demand Liquidity (ODL) networks, a development that has been praised for its potential to strengthen XRP’s position in the market. Continuous network development and these innovative projects have been considered key factors in sustaining demand for XRP against claims of low demand.
On the other hand, institutional interest in XRP continues to grow with significant increases in institutional inflows. This trend, combined with Ripple’s strategic management of the token supply, underscores XRP’s resilience despite regulatory challenges and market volatility.
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