Key Points
- Ripple unlocks 1 billion XRP in a scheduled token release.
- XRP price jumps 3%, hitting $0.6274 shortly after the release.
- The release was divided into three transactions totaling $621.79 million.
- Ripple’s escrow plan ensures stable market supply until 2027.
Ripple, the San Francisco-based crypto payment provider, has once again unlocked 1 billion XRP from its escrow accounts, a scheduled move designed to maintain liquidity and support XRP’s ecosystem.
On October 1st, Ripple unlocked 1 billion XRP, with this major release divided into three significant transactions.
The first transaction moved 500 million XRP, valued at around $310.65 million, out of Ripple’s escrow holdings. Shortly after, another 400 million XRP, worth approximately $248.89 million, was released.
Finally, the last 100 million XRP, valued at $62.25 million, completed the release. In total, Ripple unlocked 1 billion XRP worth roughly $621.79 million, based on current market prices.
This monthly release has been a consistent practice since 2017 when Ripple launched its escrow system.
The plan is to release 1 billion XRP each month until the full 55 billion XRP locked in escrow is distributed. According to Ripple’s timeline, the final release is scheduled for April 2027.
Ripple Unlocks 1 Billion XRP Tokens
San Francisco-based enterprise blockchain company Ripple has once again unlocked 1 billion XRP tokens, according to data provided by crypto wallet tracking platform Whale Alert.
Back in 2017, the company decided to place a total of 55…— BitCoin (@naypyidaw) September 2, 2024
XRP Price Reacts to Ripple’s Token Release
In response to Ripple unlocking 1 billion XRP, the market reacted swiftly. XRP prices surged 3% within a few hours of the release, pushing the token’s value to $0.6274.
This marked a significant bounce from previous levels, as XRP crossed a dynamic resistance line that had held since 2022.
The timing of this price surge coincides with a broader trend in XRP’s performance, which saw the token gain over 9% in the week leading up to the release.
Despite concerns that releasing such a large amount of XRP each month could negatively impact the market by increasing supply, the opposite has often occurred.
Investors seem to welcome the liquidity Ripple provides, and the regularity of the releases appears to instill confidence that Ripple won’t destabilize the market.
XRP’s strong performance following Ripple’s unlocking of 1 billion XRP is a positive indicator for both long-term holders and short-term traders.
With the token reaching its highest price since July 2023, some analysts speculate that further gains could be on the horizon, especially if Ripple continues to execute its distribution strategy without major disruptions.
Ripple’s Escrow Plan Ensures Stability
Ripple’s monthly release of XRP is part of a long-term strategy that has been in place since late 2017.
By unlocking 1 billion XRP each month, Ripple aims to gradually introduce tokens into the market without causing sudden shocks that could lead to massive price fluctuations.
This careful management of token supply helps stabilize the price of XRP while providing Ripple with the flexibility to fund its operations and expand its network of partnerships.
Although some tokens are sold on the open market, Ripple has committed to using a portion of these unlocked tokens to support its global payment ecosystem.
By leveraging XRP for cross-border payments and other blockchain-based solutions, Ripple aims to increase its utility, which in turn supports the demand for the token.
As Ripple continues to release XRP according to its escrow plan, investors are keeping a close eye on market reactions.
The ability of XRP to rise 3% shortly after Ripple unlocked 1 billion XRP suggests that the market is absorbing these releases well, with growing confidence in Ripple’s strategy.
Looking ahead, Ripple’s plan to continue these monthly releases until 2027 ensures a steady flow of XRP into the market.
Whether this will continue to result in price gains for the token remains to be seen, but the market is responding positively for now.
