Ripple to Unlock 1 Billion XRP Tomorrow (September 1); What's Next?

Ripple, the main developer of the XRP Ledger (XRP) and its largest holder, will unlock 1 billion XRP on September 1. This is part of Ripple's monthly unlocks since the initial distribution of the token and often precedes a price drop.

At current prices, the face value of the unlocked asset is $570 million, with some of the funds set to be sold in the next few days.

Finbold extracted the data from XRPScanshowing escrows from “Ripple (24)” and “Ripple (25)” that will end after August 31. Specifically, the former will unlock 500 million XRP in one transaction, while the latter will unlock 200 million and 300 million XRP in two transactions.

Since May 2024, Ripple has been using these two labeled accounts for monthly unlocks. Before that, the company used the accounts “Ripple (22)” and “Ripple (23)”. More than 43 billion XRP are still locked in escrow accounts for unlocks until December 2027.

Ripple's previous activity to unlock 1 billion XRP in August

On August 1, Ripple unlocked 1 billion XRP, worth about $600 million (according to Finbold at the time of the report’s publication on July 28). The company then locked up 200 million XRP in its treasury account, re-locking 800 million tokens until November and December 2027.

Interestingly, August was the month when Ripple waited longer than usual to continue its monthly sale. On August 27, the company sent all 200 million at once from “Ripple (1)” to rP4X2hTa7A7udDbE6wczXvPz7XZ63sKxv, Finbold reported.

This unknown account distributed tokens that bounced through two other unknown addresses before ending up on crypto exchanges. All of the addresses involved in these transactions had participated in previous Ripple unlocks over many months.

XRP Price Analysis Amid Ripple's Monthly Selloff

At the time of writing, XRP is trading at $0.57, down 9.40% year-to-date. Since January 1, 2024, Ripple has sold over 2.02 billion XRP from its treasury account, worth about $1.15 billion.

The price of XRP fell in four of the eight months following each unlock, with gains only seen in February and July, and neutral dynamics in the remaining two months.

Notably, the Ethereum (ETH) community was recently outraged after the Ethereum Foundation deposited $100 million to Kraken in August. The foundation disclosed the transaction as its annual budget for incremental sales, which is equal to Ripple’s monthly sales, according to Finbold.

XRP investors should keep a close eye on Ripple sales as they could have a major impact on the token’s price. However, the popular cryptocurrency could still show positive results if there is enough demand for it.

Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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