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Today, 1 billion XRP tokens were unlocked by Ripple, valued at $1.92 billion at current prices. The release is a standard operation in which the San Francisco-based cryptocurrency company releases 1 billion XRP to the public market on the first day of every month. According to the original XRPL novel, Ripple is expected to unlock a total of 55 billion tokens from the escrow account, representing almost 55% of the total XRP supply. The purpose of such a decision was to make the supply of XRP more predictable.
Currently, the cryptocurrency company has just under 37.24 billion tokens remaining in its account. How many tokens remain on the market is still unknown and will be found out when Ripple locks back unclaimed tokens.
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Given that XRP is currently one of the major newsmakers and headliners in the crypto market, such a move could cause panic, or at least volatility for the token. XRP ended November with a 283.9% price increase, but the release of 1 billion tokens comes at a time when the token's price is at a seven-year high, especially due to these nuances in the popular cryptocurrency's tokenomics. This may be a disadvantage for those who are not used to it.
XRP experienced a drawdown on the first day of December, but it was not as dramatic. The 2.4% intraday drawdown is not considered significant considering the token was bullish throughout the month of November until the last day. Additionally, XRP is currently trading above its opening price of $1.93, according to Bitstamp.
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Tomorrow is Monday and we will be able to see how XRP performs with more volumes, but despite such an eye-catching event for the token, the beginning of the month still sees the party continue. is.
