XRP’s (XRP) issuer Ripple will unlock 1 billion tokens worth $520 million on June 1. This standard practice might negatively impact XRP’s price in the future.
What Happened with XRP in May
Since 2017, Ripple has unlocked 1 billion tokens monthly through escrows. According to XRPScan, the company used the addresses ‘Ripple (22)’ and ‘Ripple (23)’ until April.
In May, new addresses ‘Ripple (24)’ and ‘Ripple (25)’ replaced the old ones. These new addresses will unlock 1 billion XRP monthly until January 2025.
On May 1, Ripple unlocked 1 billion XRP from ‘Ripple (24)’ and ‘Ripple (25)’. Ripple sold 200 million tokens to cover expenses, and the remaining 800 million tokens were re-locked until September 2027.
200 million XRP from ‘Ripple (24)’ was sent to the treasury address ‘Ripple (1)’. On May 13, Ripple sold 150 million XRP, releasing 75% of the allocated amount. On May 24, Ripple sold the remaining 50 million XRP, completing the monthly sales process.
XRP Price Analysis
The large supply influx raises concerns about the impact of Ripple’s sales on XRP’s price. Historical data shows XRP prices often drop during these sales periods.
In 2024, only 5 out of 12 sales led to positive price movements. The remaining seven days saw price drops, making the sales process closely watched by investors.
In the first 5 months of 2024, XRP experienced negative price movements in the first 3 months. After the 1 billion XRP unlock on May 1, the price remained neutral.
Today, XRP’s price stands at $0.5174 after a 0.73% drop in the last 24 hours. Market cap fell to $28 billion, and 24-hour trading volume decreased by 5% to $1.254 billion.
