- Ripple’s recent token unlock of 1 billion XRP, worth $610 million, raises questions about the impact on the long-term value of the digital asset.
- The company retains a small portion of the monthly unlocks for its treasury, while the majority is sold in the market, affecting the circulating supply of XRP.
- Detailed analysis of Ripple’s token unlocking patterns and the relocking of XRP in escrows provides valuable insights into the market dynamics and potential implications for investors.
Ripple, as the biggest holder of XRP, plays a significant role in the token supply dynamics of this popular digital asset. With 46.43 billion XRP tokens locked in escrows, not yet considered in the circulating supply, Ripple’s actions have a direct impact on the market. In this report, we delve into the recent token unlocks, their implications, and the patterns observed in XRP supply inflation.
Ripple Unlocks 1 Billion Tokens
On November 1, Ripple unlocked 1 billion XRP tokens, equivalent to a value of $610 million, out of the total 46 billion held. This monthly unlocking process, under Ripple’s control, contributes to the circulating supply of XRP. However, it’s worth noting that Ripple typically retains only a small portion of the monthly unlocks for its treasury, with the majority being sold in the market.
Monitoring Ripple Unlocks
Finbold, as a reputable source, diligently monitors Ripple’s token unlocks by analyzing the public ledger through XRP Scan. Through our research, we have identified certain patterns in XRP supply inflation, which directly impacts the long-term value of the digital asset. Understanding these patterns is crucial for investors and market participants.
Ripple’s Token Holding in November
In November, Ripple maintained a holding of 200 million XRP, consistent with previous months. With the increase in XRP’s price per token, this month’s inflation is estimated at approximately $122 million (at a rate of $0.61 per token). The transaction “D5AF6…CFFAC” consolidated the tokens unlocked in November, involving a payment from Ripple (22) to Ripple (1) wallet addresses.
Relocking XRP in New Escrows
Similar to October, the 1 billion unlocked tokens were distributed among two wallet addresses controlled by Ripple, namely Ripple (22) and Ripple (23). Subsequently, these tokens were transferred to three other accounts under the same ownership.
Ripple (1) Wallet:
- Received 200 million XRP from Ripple (22)
- These tokens remain liquid and can be readily spent
Ripple (10) Wallet:
- Received 300 million XRP from the remaining tokens unlocked by Ripple (22)
- Received 100 million XRP from Ripple (23)
- Locked 400 million XRP in a new escrow, scheduled to unlock in April 2027
Ripple (11) Wallet:
- Received 400 million XRP from Ripple (23)
- All tokens received were re-locked into an escrow, set to be unlocked by April 2027
Future Escrow Unlocks
Looking ahead, both Ripple (22) and Ripple (23) still hold a significant amount of XRP tokens for monthly escrow unlocks. These tokens, totaling 4 billion, are set to be unlocked within the next four months, with the final unlock scheduled for March 1, 2024. Market participants should closely monitor these upcoming unlocks, as they may impact the XRP market and its long-term value.
Conclusion
Ripple’s status as the largest owner of XRP, coupled with its token unlocking and relocking practices, significantly influences the token’s supply dynamics. By closely monitoring Ripple’s actions and analyzing the patterns in XRP supply inflation, investors gain valuable insights into the market’s long-term outlook. Stay informed and up-to-date with Finbold as we continue to provide comprehensive coverage of Ripple’s token unlocks and their impact on the cryptocurrency landscape.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
