What lies ahead as Ripple plans to release 1 billion XRP on October 1
On October 1, Ripple plans to release 1 billion XRP tokens that are currently not in circulation. This event coincides with the conclusion of several monthly escrows from the initial distribution of the token, which will contribute to an increase in Ripple’s sales activity. At the current market value, this unlocking represents approximately $640 million, a portion of which is set to be sold in the coming days.
Data from the public ledger, XRPScan, reveals that two accounts are set to manage the three escrows that will finalize on September 30. The Ripple (24) account will execute a single transaction to unlock 500 million XRP, while the Ripple (25) account will release 400 million and 100 million XRP from two previously scheduled escrows.
In related news, predictions indicate that Bitcoin is on the verge of a price breakout, potentially paving the way for a surge to $350,000. Meanwhile, China’s stock market has experienced significant gains this week, raising questions about whether other markets will follow suit. OpenAI o1 has also projected Bitcoin’s price trajectory for the upcoming ‘Uptober’ in 2024, while investors should be cautious as various cryptocurrencies are set to unlock a combined $300 million in supply this week.
Since its inception in 2012, XRP has consistently experienced high supply inflation compared to other cryptocurrencies. Over this period, Ripple has unlocked and distributed more than 56.5 billion XRP, while still retaining over 43 billion tokens.
In a prior unlock on September 1, Ripple released 1 billion XRP valued at approximately $570 million as of August 31. The company allocated 200 million XRP to its treasury account and re-locked 800 million tokens in escrows until December 2027.
In subsequent developments, Ripple added an additional 150 million XRP to the Ripple (1) account, which serves as the treasury’s liquid account for sales. This led to expected sales activities, including a transaction of 150 million XRP on September 13 and another sale of 200 million XRP on September 23.
This recent activity marks Ripple’s second-largest monthly sell-off in 2024, following a 400 million XRP offload in June. So far this year, Ripple has sold 2.376 billion XRP, equating to $1.51 billion at the current exchange rate. XRP is currently trading at $0.638 per token, reflecting a 4% increase year-to-date.
Investors in XRP should closely monitor Ripple’s selling habits, as they can significantly affect the token’s market price. Nevertheless, experts suggest that XRP could still see positive performance if demand remains strong, with predictions indicating that the token could reach $2 by 2025. Additionally, several other cryptocurrencies are expected to experience significant unlocks and potential sell-offs in October, particularly in the first week, as reported by Finbold.