Ripple to Unlock 1 Billion XRP on February 1: Should We Expect a Rollback or Growth?
Date: 2025-01-31 Author: Gabriel Deangelo Categories: BUSINESS
Ripple, known for developing the XRPL blockchain and issuing the XRP cryptocurrency, will once again unlock a significant portion of its tokens. On Saturday, February 1, it will release 1 billion XRP worth about $3.1 billion at current market prices. This event is part of the company’s long-term strategy, which began with the release of XRP in 2012, when it decided to leave 80 billion tokens for future use, gradually selling them on the market.
In 2017, Ripple introduced an escrow system to lock a significant portion of its supply — 55 billion XRP. The escrow practice continues to this day, with 1 billion tokens unlocked monthly. About 20% of this volume is used for company sales and other needs, and the remaining tokens are again blocked in new escrow accounts for future months. As of February 1, there are three escrow accounts for unlocking: “Ripple (26)” and “Ripple (27)”, two of which will concern 400 and 100 million XRP, and the third - 500 million.
This process allows Ripple to manage the volume of tokens on the market without creating unnecessary price spikes. However, it is important to note that during this time, the company can keep from 200 to 470 million tokens from the unlocked volume. In January, the company reserved 300 million XRP for sale and distribution on the market, which can also affect the price dynamics.
Obviously, at the time of unlocking, a short-term decrease in the XRP rate is possible. However, in order to support sustainable growth, there must be stable demand from both retail and institutional investors. Thus, the market reaction to this event will depend on the general interest in cryptocurrencies and Ripple's internal policy on controlling the volume of token supply.
