Ripple’s XRP Escrow Activity in December
Ripple, the largest holder of the XRP token, currently has 46.10 billion XRP locked in escrows and not part of the circulating supply. On December 1, Ripple released 1 billion tokens, valued at $645 million, keeping 20% of the total.
Each month, Ripple unlocks another 1 billion tokens, but typically retains only a fraction for its treasury and sells the rest on the market. Finbold has been tracking these unlocks through XRP Scan and has identified patterns that affect the long-term value of the asset.
In December, Ripple held back 200 million XRP, which is consistent with previous months. This amount is now worth roughly $130 million.
To prepare for this month’s selling activity, Ripple transferred the 200 million XRP from one address to another. Both addresses are controlled by Ripple, with one being the escrow address and the other used as its liquid treasury.
Address Details
- Ripple (1) received 200 million XRP from Ripple (22), which is still liquid and ready to be spent.
- Ripple (11) received 300 million XRP from Ripple (22) and locked this amount in two new escrows set to unlock in April and May 2027.
- Ripple (10) received 500 million XRP from Ripple (23) and re-locked all of it into an escrow set to be unlocked by May 2027.
Interestingly, both Ripple (22) and Ripple (23) still hold 3 billion XRP tokens for monthly escrows that will be unlocked within the next three months until March 1, 2024. These unlocks play a significant role in XRP’s supply inflation, and it is important for cryptocurrency investors to monitor further activities for valuable insights.
It is crucial to note that Ripple strategically liquidates its holdings, which can have an impact on short-term price action due to the substantial weight of these sell-offs in the token’s 24-hour trading volume.
Hot Take: Ripple’s Ongoing XRP Unlocking Raises Questions about Supply Inflation
Ripple’s continued unlocking of XRP tokens raises concerns about supply inflation and its potential impact on the token’s value. With billions of XRP set to be released from escrows in the coming months, investors should closely monitor Ripple’s selling activities and evaluate how it may affect the market. The strategic liquidation of holdings by Ripple has the power to influence short-term price movements, making it crucial for traders and investors to stay informed about these developments. As XRP continues to navigate its path, keeping a watchful eye on Ripple’s actions can provide valuable insights into the token’s future performance.
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