Ripple today unlocked 1 billion XRP tokens, worth around $1.92 billion at the current price. The move is part of a regular monthly process where Ripple releases 1 billion XRP to the market on the first day of each month. According to the XRPL plan, a total of 55 billion XRP will be unlocked gradually from escrow accounts, representing around 55% of the total cryptocurrency supply. This strategy aims to ensure predictability in the supply of XRP.
Currently, Ripple holds around 37.24 billion XRP in its accounts. How many tokens will remain in the market after today’s release will only become clear once the company locks unused tokens back into custody.
XRP Issuance May Lead to Volatility
XRP is currently one of the most discussed cryptocurrencies on the market. Issuing such a large number of tokens, especially when the price is at a seven-year high, could cause concern or even panic among less experienced investors. XRP ended November with a price increase of 283.9%, making the move one to watch closely.
XRP to USD by CoinMarketCap
Although regular openings of XRP are planned and popular, they can bring short-term volatility. The price of XRP fell on the first day of December, but the decline was only 2.4%, which is considered small compared to the upward trend in November.
XRP Remains Stable Despite Market Events
Despite the slight decline, XRP continues to trade above its opening price of $1.93 on the Bitstamp exchange. This positive outcome shows that the market has so far been able to absorb the impact of the token issuance without major disruptions.
Forecast for the coming days
In the coming days, especially Monday, it will be interesting to see how XRP performs under higher trading volumes. So far, the beginning of December seems to be a continuation of XRP’s winning streak, even with the attention-grabbing token issuance event