Ripple, the primary developer behind XRP Ledger and its largest holder, is preparing to unlock 1 billion XRP tokens on September 1, 2024. This routine event, part of Ripple’s monthly token unlock schedule, often precedes a notable impact on XRP’s market price.
At the current market rate, the value of the unlocked XRP is estimated at $570 million. A portion of these tokens is expected to be sold in the following days, which could influence market dynamics.
According to data retrieved from XRPScan, the tokens will be unlocked from two escrow accounts labeled ‘Ripple (24)’ and ‘Ripple (25)’. The former will release 500 million XRP in a single transaction, while the latter will unlock 200 million and 300 million XRP in two separate transactions. Ripple has been using these two accounts for its monthly unlocks since May 2024. Prior to that, the company utilized the ‘Ripple (22)’ and ‘Ripple (23)’ accounts. Notably, over 43 billion XRP remain locked in escrows, with scheduled unlocks extending until December 2027.
Ripple’s August 1 Billion XRP Unlock
In a similar event on August 1, Ripple unlocked 1 billion XRP, valued at approximately $600 million at that time. Of these, the company re-locked 800 million tokens to November and December 2027 and reserved 200 million XRP in its treasury account. Interestingly, Ripple delayed its usual follow-up sell-off in August, ultimately transferring the 200 million XRP on August 27 to an unknown account. This account then distributed the tokens through a series of transactions involving other unknown addresses before they landed on various crypto exchanges. These addresses have been involved in previous Ripple unlocks for several consecutive months.
XRP Price Analysis and Market Impact
As of now, XRP is trading at $0.57, reflecting a 9.40% decline year-to-date. Since the beginning of 2024, Ripple has sold over 2.02 billion XRP from its treasury account, amounting to approximately $1.15 billion. The price of XRP has experienced losses in four of the eight months following each unlock, with gains recorded only in February and July. The remaining two months saw neutral performance.
This trend draws a parallel with a recent controversy in the Ethereum community, where the Ethereum Foundation deposited $100 million to Kraken in August as part of its yearly budget for gradual sales, a move that mirrors Ripple’s monthly sell-offs.
XRP investors should closely monitor Ripple’s selling activities, as these could have a significant impact on the token’s price. However, despite the potential downward pressure from these sales, XRP could still see positive performance if there is sufficient demand in the market.
For further insights on Ripple’s future potential, check out this analysis predicting a surge of 10,400% for Ripple (XRP) by 2025. Additionally, the recent resignation of SEC’s Head of Crypto Enforcement, David Hirsch, has left many wondering about its implications for Ripple’s ongoing legal battle.
