Happycoin.club - Blockchain developer Ripple's XRP Ledger (XRP) will unlock 1 billion tokens worth $520 million on June 1. Ripple does these sales on a monthly basis, and this could negatively impact the price of XRP in the coming weeks.
Ripple has been releasing 1 billion tokens from escrow accounts on the first day of every month since 2017. According to XRPScan data, until April of this year the company used the “Ripple (22)” and “Ripple (23)” wallets for this purpose.
However, these accounts no longer contain active contracts to be released, and Finbold said the company was already using two other addresses in May. Currently, monthly escrow funds until January 2025 are held in the Ripple (24) and Ripple (25) wallets.
Summary of Ripple 24 and Ripple 25 escrow wallets. Source: XRPScan
What happened after the XRP token was unlocked in early May On May 1st, the escrow system released 1 billion XRP from the Ripple (24) and Ripple (25) accounts. Ripple later reserved 200 million tokens for the sale and re-locked the rest in its escrow accounts until September 2027.
Ripple (XRP) Monthly Unlock – May 2024
As it turns out, the “Ripple (24)” wallet sent 200 million XRP to “Ripple (1),” the company’s treasury account. On May 13, Ripple sold 150 million XRP, thus dumping 75% of the reserved amount. Later, on May 24, Ripple disposed of the remaining 50 million XRP, ending the month-long sale.
Summary information on the account and transactions of the Ripple wallet (1). Source: XRPScan
Analysis of the XRP price against the backdrop of Ripple sales As practice has shown, Ripple sales directly affect the price of XRP, given the pressure created by the supply of the token on the spot market. Historically, most of the time when Ripple sold its tokens, XRP experienced local price drops.
In 2024, only five of the 12 sell-off days had positive price movements: February 5 and 11, April 14, and May 13 and 20. Local collapses were recorded on all other seven days, indicating the importance of monitoring the company's actions.
Moreover, XRP experienced negative performance in three of the first five months of 2024, but after unlocking 1 billion XRP on May 1, neutral price action was observed for the entire subsequent month.
XRP/USD daily price chart, illustration of Ripple sales. Source: TradingView
