Ripple, the creator of the XRP Ledger, is gearing up to unlock another 1 billion XRP on August 1, as part of its monthly distribution process that began in 2017. This move has the potential to create selling pressure on the token, as Ripple is the largest holder of XRP. Currently, 44.02 billion XRP are still locked in escrow, waiting to be released through Ripple sell-offs.
The unlocking process will take place at the ‘Ripple (24)’ and ‘Ripple (25)’ accounts, which hold a total of 1 billion XRP in escrow contracts. Previous unlocks by Ripple have seen the company relocking a significant portion of the released tokens, as was the case in July when 800 million XRP out of 1 billion were relocked after 200 million were sent to the treasury account.
In total, Ripple has sold 1.826 billion XRP year-to-date, amounting to $1.09 billion at the current price of $0.60 per token. Despite some negative price actions seen after the sales, XRP has managed to recover from a significant crash and is currently down 1.60% on a year-to-date basis.
The XRP price analysis following Ripple’s unlocks has shown a mixed performance, with price movements depending on the amount of XRP sold on any given day. While the market awaits the upcoming 1 billion XRP unlock on August 1, traders and investors are advised to remain cautious and consider the cryptocurrency’s economic fundamentals before making any investment decisions.
In conclusion, Ripple’s monthly XRP unlocks have become a regular occurrence since 2017, with the company holding the majority of the tokens in escrow. As Ripple continues to release these tokens into circulation, the market will closely monitor the impact on XRP’s price and overall market sentiment. Investors should stay informed and exercise caution when trading XRP in the coming days and weeks.
