Will the price of XRP react to Ripple unlocking 10,728,771,133 XRP on January 1?
Ripple releases 1 billion XRP every month to support their operations.
On January 1, 2025, the market will face another such token unlock, but some are starting to worry, especially since Ripple's tokens have been performing prominently on the charts.
Let's see how the price of XRP will respond to this multi-billion dollar token unlock.
Ripple has locked 55 billion XRP tokens (which is more than half of the total supply) in an escrow account, releasing 1 billion on the first of each month.
Although it sounds like a large amount that could affect the price of Ripple's tokens, that's not actually the case.
These unlocked tokens are mainly provided to exchanges and partners for liquidity, not for buying and selling.
So these unlocked XRP won't directly impact the market, and the price of XRP won't be affected as a result.
Take the unlock in December as an example; that was Ripple's largest release of XRP, yet the price remained steadily around $1.8, and even increased the next day due to some good news, such as the launch of the RLUSD stablecoin.
On January 1, 2024, Ripple will release 1 billion XRP through three transactions, but this won't create much of a price impact, as they will also re-lock a portion of the tokens to reduce the selling pressure.
Currently, the price of XRP is $2.18, and although trading volume has slightly decreased, overall, Ripple's performance is quite impressive, having emerged from years of stagnation.
If Bitcoin's price can stabilize, it is not impossible for XRP to rise to $10. However, if Bitcoin's price falls below $90,000, it may trigger a bear market, and the price of XRP could drop to $1.5 or even lower.
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