Ripple will unlock 1 billion XRP on August 1 – What to expect?
Ripple is responsible for developing the XRP Ledger (XRP) and is the token’s largest holder, whose actions impact its price. On August 1, the company will unlock another 1 billion XRP from the initial distribution, potentially creating relevant selling pressure.
Notably, Ripple has done these unlocks every month since implementing the escrow system in 2017, locking 55 billion XRP. Right now, around 44.02 billion XRP are still locked into these escrows, waiting to enter circulation through Ripple sell-offs.
The next escrows will end on July 31, releasing the tokens with a $600 million nominal value by press time. However, Ripple may re-lock the most part of it, as happened in previous months.
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Finbold retrieved on-chain data from XRPScan, revealing that the unlocking will happen at ‘Ripple (24)‘ and ‘Ripple (25)‘ accounts. The former has two escrows worth 200 million and 300 million XRP, while the latter has a single 500 million contract – totaling 1 billion XRP.
Ripple’s previous 1 billion XRP unlocks
Ripple unlocked 1 billion XRP in July and sent 200 million to its treasury account, ‘Ripple (1)‘, relocking 800 million.
Later, it added another 100 million XRP from a liquid address under the company’s control, ‘Ripple (35).’ This was a similar activity observed in June, resulting in a monthly sell-off of 400 million and 300 million XRP, respectively.
As Finbold reported, Ripple sold 1.826 billion XRP from its treasury account year-to-date, worth $1.09 billion at current prices of $0.60 per token. The asset is down 1.60% in this same period, recently recovering from a massive crash.
XRP price analysis amid Ripple unlocks
In January, Ripple sold 226 million XRP in three days, all resulting in negative price action for the token. February had a total of 260 million XRP in another three days, two of which had positive performance. March closed the first quarter with 240 million XRP sold from the treasury account in two red days.
Further, Ripple sold 200 million XRP on two days each of April and May, registering three days of gains. However, June marked the company’s largest monthly dump in history, offloading 400 million XRP in two losing days. Most recently, Ripple sold 300 million XRP in two batches of 150 million each as the price surged.
Now, the market awaits August 1’s unlock of 1 billion XRP, curious about what Ripple’s selling activity will bring. As things develop, traders and investors must remain cautious and weigh the cryptocurrency‘s economic fundamentals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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