XRP price threatened as Ripple unlocks 1 billion coins cryptoforbs

The price of XRP has already been under pressure over the past month, with the outlook for Ripple still to be determined in the near future. Although XRP has been rising along with the rest of the cryptocurrency market over the past few days, there is still uncertainty about the next uptrend.

However, this small price movement may be short-lived, as the number of XRP tokens in circulation has increased by 1 billion XRP, about 1.87% of the circulating supply of 53.312 billion tokens.

Potential impact on XRP price and supply

On-chain data from Whale_Alerts showed that pools of XRP totaling $1 billion of escrow were opened in three transactions from two separate wallets. First, 400 million XRP tokens worth more than $205.9 million were unlocked.

– Whale Alert (@whale_alert) October 1, 2023

In the second transaction, 100 million XRP tokens worth $51.4 million were unlocked.

100,000,000 #XRP ($51,478,668) Opened out of escrow at #ripple https://t.co/P8BgPU21Hr

– Whale Alert (@whale_alert) October 1, 2023

In the latest transaction, Ripple unlocked 500 million XRP tokens worth $257.3 million. Given the current market price of XRP at $0.5177, this puts the value of the unlocked tokens at over $514.6 million.

500,000,000 #XRP ($257,393,344) Opened out of escrow at #ripple https://t.co/1lSZdeqcMS

– Whale Alert (@whale_alert) October 1, 2023

Ripple’s latest open is part of a rolling issuance in its plan to issue 55 billion XRP tokens over 55 months. Since 2017, the payment company has been known to issue 1 billion XRP tokens every month through a smart contract. While Ripple claims this helps increase liquidity and utility, it also means a large influx of new coins entering circulation.

As more XRP becomes available, the price often falls as supply outstrips demand. Each new release adds downward pressure, and the price drops a lot in the days before and after the open of escrow.

SOL market cap currently at $9.5 billion on the weekend chart: TradingView.com

The monthly warranty has worked great Prices have decreased in recent months, especially during periods of low interest in XRP. In particular, XRP saw a major sell-off in June as whales offloaded around 120 million XRP after Ripple opened its escrow.

Ripple is known to periodically re-lock a portion of the tokens issued in the escrow system to reduce selling pressure, which helps expand the runway to unlock the remaining tokens. For example, Ripple immediately re-locked 800 million (80%) of its September tokens. The total amount that will be secured in escrow this month has not yet been determined.

Ripple: Future Forecast for XRP

XRP is currently up 1.83% on a seven-day time frame, but the price outlook looks highly uncertain in the short term. Different expectations They came to the future of the token, even with one prediction Go high like $10,000.

(The content of this website should not be construed as investment advice. Investing involves risk. When you invest, your capital is at risk.)

Featured image from iStock