Ripple's 1 Billion XRP Unlock: What Will It Mean for the Price?
Ripple is set to unlock 1 billion XRP tokens on January 1 , marking the first token unlock of 2025. This raises the question: Will it affect the price of XRP? What is the XRP Unlock Event? Ripple has locked 55 billion XRP, nearly 55% of its total supply, in an escrow account. Every month, Ripple unlocks 1 billion XRP for operational funding and liquidity. While it’s a large amount, it doesn’t usually impact the XRP price because these tokens are not sold directly on the market. How Does This Affect XRP’s Price? Liquidity, Not Sell Pressure: Ripple unlocks tokens to provide liquidity, not to sell. This keeps supply steady and avoids price drops. Re-locking Tokens: Some unlocked tokens are re-locked, further reducing market impact. Past Trends: Even during the largest XRP sell-off in December 2024, the price stayed stable at $1.8 and surged the following day. What to Expect from the January 1 XRP Unlock? On January 1, Ripple will unlock 1 billion XRP in three transactions: 200 millio...