One billion XRP tokens were unlocked by Ripple today, which can be valued at $1.92 billion at the current price. This release is a standard operation in which the San Francisco-based crypto company releases 1 billion XRP to the open market every first of the month. According to the original XRPL novel, Ripple is expected to unlock a total of 55 billion tokens from its escrow accounts, which is nearly 55% of the total XRP supply. The goal of such a decision was to make the supply of XRP more predictable.
🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 🔓 300,000,000 #XRP (585,161,193 USD) unlocked from escrow at unknown wallethttps://t.co/8VO4uFve0F
— Whale Alert (@whale_alert) December 1, 2024
Currently, the cryptocurrency company has just under 37.24 billion tokens remaining in its accounts. How many tokens remain in the market is still an unknown value and will be known when Ripple locks back unclaimed tokens.
Given that XRP is one of the main newsmakers and headliners in the crypto market right now, such a move could cause panic or at least volatility for the token. XRP ended November with a price gain of 283.9%, and the release of 1 billion tokens when the price of the token is at a seven-year high may be negative, especially for those unfamiliar with such nuances of the popular cryptocurrency’s tokenomics.
XRP experienced a drawdown with the first day of December, but not that dramatic. Considering that all of November until the last day was bullish for the token, the 2.4% intraday drawdown can hardly be considered significant. Furthermore, XRP is now trading above its opening price of $1.93, according to Bitstamp.
Tomorrow is Monday, and it will be possible to see how XRP behaves on higher volumes, but the beginning of the month is still a continuation of the party despite such eye-catching events for the token.
