Understanding Ripple’s Token Unlock and Re-lock
If you’re interested in Ripple and its token, XRP, it’s important to know about the recent unlock and re-lock of one billion XRP. On September 1, Ripple’s escrow system released one billion XRP into circulation. However, Ripple only kept 200 million XRP for itself, re-locking 800 million XRP into two different escrows. This means that Ripple has the ability to deploy the remaining 200 million XRP to the market at any time, potentially impacting the token’s price in the short term.
Insights from Data Analysis
According to data analyzed by Finbold, the one billion XRP was unlocked by two known Ripple accounts, Ripple 22 and Ripple 23, in four separate transactions. From these accounts, 200 million XRP was sent to Ripple 1, while 300 million XRP was sent to Ripple 10, locked in an escrow until February 2027. The entire 500 million XRP from Ripple 23 was sent to Ripple 11, to be re-locked in a new escrow until January 2027.
XRP Price Analysis and Potential Impact
As of now, XRP is trading at $0.50, experiencing a 1.7% loss since the token unlock on September 1. If XRP reaches its all-time high market cap, one XRP could be worth close to $2.48, which is 27% lower than its previous all-time high price in US dollars from 2018. It’s interesting to note that the 200 million new XRP introduced this month accounts for 0.37% of the token’s circulating supply, potentially leading to a yearly inflation rate of around 4.4% for XRP holders.
Hot Take
Keep an eye on Ripple’s token movements as they can have a significant impact on XRP’s price. The re-locking of 800 million XRP highlights Ripple’s strategy to control token circulation and potentially influence short-term price fluctuations. It’s crucial to stay informed and make well-informed investment decisions when dealing with cryptocurrencies like XRP.
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