Every month, Ripple unlocks another 1 billion tokens. The company usually keeps only a portion of it for its treasury and sells the rest on the market. Finbold has been tracking these unlocks and has identified patterns that affect the long-term value of the asset.
In January, Ripple retained 200 million XRP, which is in line with previous months. This amount is now worth approximately $126 million, with each token priced at $0.63 at present.
Specifically, the company prepared for this month’s selling activity by transferring the 200 million XRP from ‘Ripple (22)’ to ‘Ripple (1)’. Both accounts are controlled by the institution, with the former being the unlocked escrow address and the latter used as its liquid treasury.
Similar to previous months in 2023, the escrows in ‘Ripple (22)’ and ‘Ripple (23)’ accounts have now reached their conclusion.
On January 1, the ‘Ripple (22)’ account unlocked 500 million XRP, sending 200 million to ‘Ripple (1)’ and 300 million to ‘Ripple (11)’. Interestingly, the ‘Ripple (11)’ account is currently used to re-lock XRP in new escrows. As for this recent transaction, the 300 million will be released on May 1, 2027.
Subsequently, the ‘Ripple (23)’ account sent the unlocked 500 million to ‘Ripple (10)’, which is fully locked in an escrow until June 1, 2027.
However, both ‘Ripple (22)’ and ‘Ripple (23)’ still hold 2 billion XRP tokens for monthly escrows that will end within the next two months, until March 1, 2024. These unlocks contribute to the inflation of XRP’s supply.
It is important to note that Ripple usually sells their holdings strategically. These sell-offs can have a significant impact on the token’s short-term price movement, as they represent a substantial portion of its 24-hour trading volume.