Ripple To Unlock 20% Of Its Stored 1 Billion Token

Ripple To Unlock 20% Of Its Stored 1 Billion Token

Ripple is about to significantly advance its operations through its latest decision to release 1 billion XRP coins from its escrow system. Investors and industry watchers have taken notice of the company’s swift relocking of 800 million XRP, or 80% of the unlocked tokens, in new contracts that are expected to happen by 2027.

Ripple first released one billion XRP coins from escrow on October 1. Such Token unlocks have, in the past, sparked debate and rumors in the Bitcoin community concerning their potential market effects. Ripple has said they will apply a different strategy by delaying the release of all the unlocked tokens into circulation. The considered circulating supply of XRP remains constant because of this action.

Before the 1 billion tokens were unlocked on September 30, the total circulating quantity of XRP (as of press time) was estimated by the CoinMarketCap index to be 53.312 billion – and the price of the token had declined by 3% shortly after the release. This indicates that the issued tokens are not now considered part of the market’s circulating supply.  

Market Activity After Release Uncertain, Ripple Praised For The Move

While Ripple has relocked most of the unlocked tokens, the company is anticipated to circulate 200 million XRP of the total unlock eventually. This release’s timing is still undetermined, and how it affects the digital asset price will depend on current market conditions, investor sentiment, and trading activity.

It was also gathered that 200 million XRP accounts, with a total of $102 million, at $0.51 per Token (as of the time of writing), are expected to increase the current supply of XRP by 0.37%. This move is expected to cause an annual supply inflation of about 4.44% should the company (Ripple) maintain this pattern.

It was also disclosed that most XRP tokens were sold at the secondary market through a blind bid and ask transactions method. Ripple also sold some reasonable XRP to some On-Demand Liquidity (ODL) clients, a move seen as a fast method for a cross-border settlement.

Data: 75 Million XRP Tokens Already Spent, Investors See Opportunities

This move by Ripple presents opportunities and unknowns for XRP investors and fans. The eventual release of the remaining 200 million XRP tokens into circulation will be a crucial development to monitor as it may impact the digital asset’s supply and demand dynamics.

Data from Finbold shows that 75 million XRP tokens were spent in a space of six days on September 18th. Another set of 50 million XRP tokens were also released for circulation on September 22nd. It was released from the reserve of 25 million XRP in September’s escrows, including another 25 million XRP tokens from the last releases.

This is in addition to the 25 million XRP tokens released in the past. Market participants and investors will be keenly observing price changes for XRP in the coming weeks and months and evaluating the effects of the newly released tokens on the ecosystem of the digital asset.

The data also showed that the cryptocurrency market will follow the spending track for October to predict the future implications of any trading opportunities that may arise in the cause of this latest release. Meanwhile, in another development, an anonymous whale has reportedly transferred 28.5 million XRP tokens worth $14.73 million (at current market price) to Bitstamp cryptocurrency exchange.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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