Unpacking Release of 45.90 Billion XRP Tokens

Approximately 45.90 billion XRP are held in escrow by Ripple and do not appear in the token’s supply in circulation. Ripple unleashed 1 billion XRP on January 1, worth $630 million, retaining 20% of the total.

Ripple grants one billion additional tokens each month. Frequently, only a portion of it is retained by the company for its treasury; the remainder is sold on the market.

Ripple withheld 200 million XRP in January, as it had previously done. As of press time, each token is valued at $0.63, for a total current value of approximately $126 million.

In particular, the organization organized its selling activity this month by transferring 200 million XRP from ‘Ripple (22)’ to ‘Ripple (1)’. The institution exercises authority over both accounts, designating one as the unsealed escrow address and the other as its liquid asset repository.

In line with preceding months in 2023, escrows for the ‘Ripple (22)’ and ‘Ripple (23)’ accounts have been completed.

On January 1st, the former transferred 500 million XRP to ‘Ripple (1)’ and 300 million to ‘Ripple (11)’. Notably, this account is employed to re-establish XRP in fresh escrows. Concerning the transaction above, the 300 million will be dispensed on May 1, 2027.

Subsequently, ‘Ripple (23)’ transferred the unlocked 500 million to ‘Ripple (10)’, which was similarly placed in escrow until June 1, 2027.

However, as of March 1, 2024, both ‘Ripple (22)’ and ‘Ripple (23)’ continue to retain 2 billion XRP tokens in monthly escrows, which will expire within the next fortnight. Unlocking XRP represents supply inflation.

It is critical to comprehend that Ripple typically divests their holdings during periods of strategic importance.

In essence, the sell-offs constitute a significant portion of the 24-hour trading volume of the token, which has the potential to impact short-term price fluctuations.