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Ripple’s Monthly $1B Token Release Triggers 2% XRP Price Drop

Story Highlights
  • Ripple monthly release of 1 billion XRP tokens from escrow, triggering a 2% drop in price.

  • Out of 1 billion XRP unlocked, only 330 million new tokens entered the market.

  • Meanwhile, the trading volume dropped 18% to almost $2 billion following Ripple’s June XRP release.

Ripple, the blockchain-based payment company, has just released a massive 1 billion XRP tokens from its escrow account, currently valued at over $2.18 billion. This regular monthly release has caused a small but noticeable 2% drop in XRP’s price.

Let’s look at what Ripple is doing, why they’re releasing so much XRP?

Ripple Monthly Release of 1B XRP Token

As part of its regular monthly release, Ripple unlocked the tokens through three quick transactions. According to updates from Whale Alert, the first move saw 400 million XRP sent to Ripple’s own wallet. 

Just minutes later, another 500 million XRP were unlocked and transferred to a different Ripple wallet. Finally, a third transaction released 100 million XRP, also ending up in one of Ripple’s wallets.

But Here’s the Catch…

Even though they unlocked 1 billion XRP, Ripple also locked 670 million XRP back into escrow this month. So only 330 million new XRP made it into the market. This careful step helps keep prices from getting out of control. Ripple has done this for years, and it’s worked well so far.

Why Does Ripple Do This?

Ripple has been unlocking 1 billion XRP each month since 2017, after locking up a big stash of 55 billion XRP. This monthly routine helps Ripple cover its costs and keep things balanced.

They don’t dump all the tokens at once, which would flood the market. Instead, they sell just enough to fund operations and lock the rest back up.

Impact On XRP Price

After Ripple’s June release, XRP’s price fell by about 2%, landing at around $2.19. Its total market value now stands at $128 billion. At the same time, trading activity has slowed down too. 

The 24-hour trading volume is nearly $2 billion, showing a drop of 18% compared to before.

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FAQs

What is Ripple escrow?

Ripple escrow is a mechanism where a large portion of XRP (55 billion initially) is locked up and released systematically over time, usually 1 billion XRP monthly.

Why does Ripple conduct monthly XRP escrow releases?

Ripple unlocks 1 billion XRP monthly since 2017 to fund its operations and maintain market balance, selling only enough to prevent oversupply.

How did Ripple’s June XRP release impact its price?

XRP’s price dropped by about 2% to $2.19 after the June release. Its 24-hour trading volume also decreased by 18%.

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