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Ripple's XRP buyback boosts price amid broader crypto market recovery

Published Dec 10, 2023 21:08
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GLOBAL MARKETS - Ripple has recently undertaken a significant buyback of its XRP tokens, purchasing approximately 700 million units. This move has been linked to a notable price surge of over 7% for the cryptocurrency, taking its value to $0.69, as reported by CoinMarketCap. The buyback is part of Ripple's strategy to stabilize the XRP market and maintain liquidity, particularly as other altcoins have also been seeing gains in what appears to be a wider recovery in the cryptocurrency sector.

The initial enthusiasm that boosted XRP's price following a court ruling by Judge Analisa Torres, which determined that XRP is not a security, has since waned. Despite the legal clarity provided by the decision, XRP saw all its post-ruling gains erased in the subsequent weeks, underperforming in comparison to other cryptocurrencies.

While Ripple's direct sales of XRP seem to have little direct impact on market prices, the selling activity of On-Demand Liquidity (ODL) customers on exchanges may exert downward pressure on the value of the digital asset. This distinction is particularly relevant for retail investors who experience the market differently depending on whether they are affected by direct sales or exchange-based selling pressure.

The observed decrease in circulating supply is indicative of Ripple's substantial buyback efforts. These efforts are perceived as a response to concerns over the tepid movement in XRP's price and may serve as a countermeasure against the potential price depression caused by ODL customer sales on exchanges.

This strategic acquisition by Ripple underscores the complexities of cryptocurrency markets, where various factors including legal decisions, company actions, and customer behaviors intertwine to influence prices. As the crypto market continues to recover, Ripple's proactive measures aim to bolster confidence and stability within its investor community.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Ripple's XRP buyback boosts price amid broader crypto market recovery
 

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