CoinDesk reports:
Ripple, the company behind the development of XRP Ledger (XRP), will unlock 1 billion tokens worth $4.7 billion on July 1st. This is part of the monthly release by Ripple, which may have a negative impact on the price of XRP in the coming weeks.
Historically, Ripple has been unlocking 1 billion tokens through escrows since 2017, completing the process on the first day of each month. According to XRPScan, the company has been using “Ripple (24)” and “Ripple (25)” to manage the escrows since May 2024. The wallet currently holds 1 billion XRP in escrow to be unlocked monthly until January 2025.
Specifically, Ripple (24) will unlock 500 million XRP in two escrows of 100 million and 400 million tokens, while Ripple will unlock 500 million tokens in a single escrow on July 1st.
The escrow data for Ripple (24) and Ripple (25). Source: XRPScan
After the token unlock in June, Ripple reserved 200 million tokens for sale and relocked the remaining tokens in escrow until September 2027. Additionally, the company added an extra 200 million XRP in the last sale, making it the largest monthly sale in its history.
Monthly Ripple (XRP) unlock – June 2024. Source: Finbold
According to developments, Ripple (24) sent 200 million XRP to the “Ripple (1)” treasury account. On June 7th, the company sold 150 million of the reserved amount. On June 20th, Ripple sold the remaining 250 million XRP, concluding the month’s sale.
Ripple (1) transaction history. Source: XRPScan
Analysis of XRP price during Ripple’s sale
It is worth noting how Ripple’s sales directly affect the price of XRP, given the supply pressure Ripple causes in the spot market. Historically, XRP has experienced partial crashes for most of the time when Ripple sells tokens.
In 2024, out of 14 sale days, only 5 days showed positive price movements: February 5th, 11th, April 14th, May 13th, and 20th. The other nine days resulted in partial crashes, highlighting the importance of monitoring company activities.
Furthermore, XRP had negative monthly performances for four out of the first six months in 2024. So far, the price movement has been very negative since Ripple unlocked 1 billion XRP on June 1st.
XRP/USD daily price chart, showing Ripple’s sales. Source: TradingView/Finbold
At the time of writing, XRP is trading at $0.469 per token, down 9.25% from the unlock price.
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