With XRP performing quite well on the charts recently, concerns have been raised about the upcoming 1 billion XRP unlock, which Ripple (the company behind XRP) does every month to fund its operations.
On January 1, 2025, the market will witness the first token unlock event of 2025. The XRP community is waiting to see how the token price will react to this billion-dollar XRP unlock.
Will Ripple's Token Unlock Affect XRP Price?
Notably, Ripple has 55 billion XRP tokens locked in an escrow account, representing nearly 55% of the total XRP supply. Ripple unlocks 1 billion of the supply on the first day of every month. The XRP unlocks, Ripple says, are “done to provide liquidity to exchanges and partners, not to buy or sell,” which prevents them from directly entering the market and influencing the XRP price.
Ripple's December XRP unlock also had no impact on the price, as it remained around $1.8 and even spiked the next day due to a number of factors, including the launch of Ripple's RLUSD stablecoin.
Analysts are bullish on XRP
A popular analyst, Ali Martinez recently shared on X that “whales have bought another 60 million XRP in the last 48 hours,” which reinforces the bullish belief in XRP’s future.
XRP is currently trading at $2.16, down more than 5.5% over the past 24 hours.
Another analyst, Egrag Crypto in his recent analysis noted that “With BTC dominance falling and ETH dominance steadily rising, XRP has the potential to explode to outperform both BTC and ETH. Currently at 3.93% dominance (on the 0.382 Fib) and if XRP closes above the 0.5 Fib (5.57%), we could see double-digit upside ahead.”
2025, a landmark year for XRP?
Bitstamp, the world’s oldest cryptocurrency exchange, has predicted that “2025 could be a landmark year for XRP,” which has sparked excitement in the XRP community and the cryptocurrency community at large.
Furthermore, the recent approval of Ripple’s RLUSD stablecoin by the New York Department of Financial Services highlights XRPL’s role in enterprise-grade payments, tokenization of real-world assets, and DeFi. Ripple CEO Brad Garlinghouse recently described RLUSD as “the gold standard for the enterprise sector,” emphasizing the stablecoin’s fit with the XRP ecosystem.