Ripple, the company behind the XRP Ledger (XRP) development, will unlock 1 billion tokens on June 1, worth $520 million. This is part of Ripple’s monthly sell-offs, which could negatively impact the XRP price in the following weeks.
Historically, Ripple has been unlocking 1 billion tokens through escrows, finalized on the first day of every month since 2017. Until April, the company has been using ‘Ripple (22)’ and ‘Ripple (23),’ according to XRPScan, to manage the escrows.
However, these accounts no longer hold active unlocking contracts, and May has already used two different addresses, as Finbold reported. The wallets ‘Ripple (24)‘ and ‘Ripple (25)‘ currently hold the 1 billion XRP monthly unlock escrows until January 2025.
What happened after Ripple’s XRP token unlock in May
The escrow system unlocked 1 billion XRP on May 1 from ‘Ripple (24)’ and ‘Ripple (25)’ accounts. Later, Ripple reserved 200 million tokens for the sell-off and re-locked the rest in escrows for September 2027.
As developed, ‘Ripple (24)’ sent 200 million XRP to ‘Ripple (1)‘, the treasury account. On May 13, the company dumped 75% of the reserved amount, selling 150 million XRP. Later, on May 24, Ripple got rid of the remaining 50 million XRP, closing its month’s sell-off.
XRP price analysis amid Ripple sell-offs
It is noteworthy how Ripple sales directly impact XRP’s price, considering the supply pressure they create on the spot market. Historically, XRP suffered a local crash most of the time Ripple sold its tokens.
In 2024, only five of the 12 sell-off days had positive price action: February 5, 11, April 14, May 13, and 20. All the other seven days were of local crashes, evidencing the importance of monitoring the company’s activities.
Moreover, XRP had a negative monthly performance in three of the first five months of 2024, year-to-date. So far, May has displayed a neutral price action from its opening when Ripple unlocked 1 billion XRP on May 1.
As of this writing, XRP was trading at $0.52 per token.
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