The post Will XRP Price React To Ripple’s 1B XRP Unlock On January 1? appeared on BitcoinEthereumNews.com.

Ripple unlocks 1 billion XRP every single month to fund its operations. On January 1st, the market will witness 2025’s first token unlock event, but it is a matter of concern for some, as the Ripple token is performing significantly well on the charts. Let’s see how the XRP price will react to these Billions worth of XRP unlocks. Will Ripple’s Token Unlock Affect XRP Price? Ripple has locked 55B XRP tokens, which is nearly 55% of the total XRP supply, in an escrow account. Out of which, it unlocks a 1B supply on the first of every month. Although the amount is enough to affect the Ripple token price heavily, it doesn’t, and the same will happen at the upcoming Ripple unlock event. This is because the unlocks are made to provide liquidity to exchanges and partners, not to sell or buy. This way, these unlocked XRP do not enter the market directly, leaving the XRP price unaffected. This also gets clear with the December unlocks, which became the biggest Ripple’s XRP sell-off. Still, the price stayed at around $1.8 and even surged the next day under the influence of many bullish factors, including the RLUSD stablecoin launch. On January 1, 2024, Ripple will unlock 1B XRP in three transactions, 200M XRP, 300M XRP, and 500M XRP, which is nearly 1.75% of the XRP’s total circulating supply. This will happen with two main escrow wallet addresses, as Ripple (24) will be responsible for 200M & 300M XRP unlocks, which were locked in December 2020 and January 2021. Additionally, the second account, Ripple (25), will unlock the 500M tokens, locked in 2021. Ripple unlocks these tokens to fund operations, develop the ecosystem, and provide liquidity. Even in this 1B count, they re-lock a portion of the tokens, which reduces the…

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Filed under: News - @ December 26, 2024 11:26 am