Potential Impact of Increased XRP Tokens
The recent increase of 1 billion XRP tokens in circulation could have an impact on the price and supply of XRP. On-chain data has shown that these tokens were unlocked from escrow in three separate transactions. The first transaction unlocked 400 million XRP tokens worth over $205.9 million.
price slumps in the past months, especially during periods of lower interest in XRP. In particular, XRP witnessed a major selloff in June as whales dumped around 120 million XRP after Ripple unlocked its escrow.
Ripple has a practice of relocking a portion of released tokens into the escrow system to reduce selling pressure. This helps extend the timeline for the remaining tokens to be unlocked. In September, Ripple relocked 800 million (80%) of the token unlock. The total amount to be locked back in escrow this month is yet to be determined.
The Future Outlook for XRP
XRP has experienced a 1.83% increase in price over the past seven days. However, the short-term outlook for its price remains uncertain. There have been various predictions about the future of XRP, with one even suggesting a price as high as $10,000.
Hot Take: XRP Faces Uncertainty Amid Increased Supply
The recent increase in the number of XRP tokens in circulation has added to the uncertainty surrounding its future. While the crypto market has seen some positive movement recently, there are still doubts about when the next bull run will occur for XRP. Additionally, previous instances of token unlocks have led to price slumps, indicating potential selling pressure. Ripple’s practice of relocking tokens into escrow may help mitigate this pressure, but the overall impact on price and supply remains to be seen. As XRP continues to navigate these challenges, its short-term outlook remains highly uncertain.
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