Ripple’s XRP Unlocking and Escrow Strategy
Ripple, the largest owner of XRP, has unlocked 1 billion tokens worth $610 million out of the total 46.43 billion XRP it holds in escrows. This monthly unlocking process is done by Ripple, but the company only keeps a small portion of the tokens for its treasury, while the rest are sold on the market. This continuous supply inflation directly affects the long-term value of XRP and its potential for reaching new all-time highs in market cap.
Patterns in XRP Supply Inflation
Finbold has been monitoring Ripple’s unlocks using XRP Scan and has noticed certain patterns in the supply inflation. In November, Ripple kept 200 million XRP, which aligns with previous months. With the current price per token, this month’s inflation is valued at approximately $122 million.
The recent transaction recorded on XRP Scan shows that November’s unlocked tokens were consolidated and transferred between Ripple wallet addresses.
Ripple Relocks 800 Million XRP in New Escrows
Similar to October, the 1 billion unlocked tokens were held by two Ripple-controlled wallet addresses: Ripple (22) and Ripple (23). These tokens were then distributed to three other accounts under the same ownership.
- Ripple (1) received 200 million liquid XRP from Ripple (22).
- Ripple (10) received 300 million XRP from Ripple (22) and 100 million XRP from Ripple (23). Additionally, 400 million XRP were locked in a new escrow set to unlock in April 2027.
- Ripple (11) received 400 million XRP from Ripple (23), all of which were re-locked in an escrow scheduled to unlock in April 2027.
Furthermore, both Ripple (22) and Ripple (23) still hold 4 billion XRP tokens for monthly escrows that will be unlocked within the next four months until March 1, 2024.
Hot Take: Ripple’s Control over XRP Supply
Ripple’s unlocking and escrow strategy plays a significant role in determining the availability and value of XRP in the market. The continuous unlocking of tokens, coupled with their subsequent sale, can impact the price of XRP. While this strategy allows Ripple to maintain control over its treasury, it also raises questions about the potential for supply inflation and its effect on long-term value. Investors and traders should closely monitor Ripple’s actions and token unlocks to make informed decisions regarding their XRP holdings.
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