Ripple Unleashes 1 Billion XRP: Could This Trigger A Price Tsunami?

Christian Encila

9 months ago

3 mins read

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Once again generating news is Ripple as the company issued 1 billion XRP coins from its escrow accounts on September 1, 2024. Costing more than $560 million, the release has caused waves in the digital currency market.

First, 500 million XRP were released in three consecutive phases; next were 200 million and finally 300 million. Every one of the three transactions was completed within minutes, suggesting that Ripple was onto maintaining really good token supply control.

Market Reaction To The Unlock

The price of XRP did go slightly lower right after the unlock, at $0.55, which is a drop of 2.26% from the previous day. This shouldn’t really be a surprise, given how large-scale releases have time and again proved to affect prices.

According to Whale Alert, at 10:50 UTC+8 today, 1 billion XRP were unlocked from the rDqGA…mKxEsF in three transactions, with a value of over $560 million dollars. The address: rDqGA…mKxEsF was marked as an official Ripple address by XRPSCAN and bithomp.…

— Wu Blockchain (@WuBlockchain) September 1, 2024

Ripple’s Chief Technology Officer, David Schwartz, has previously acknowledged that mixed feelings when it comes to these monthly unlocks. While this may be an attempt to make the markets more transparent and predictable, in actual sense, such releases serve to inject volatility into the markets.

Interestingly, the unlocked tokens remain in the “Ripple 24” wallet, which means there are no immediate plans to further distribute them. That can soften a more severe drop in price since these tokens are not yet on the market.

However, analysts warn that the increased liquidity from such tokens may lead to possible sell-offs and further unpredictability of the token’s price in the near future.

Historical Context And Predictions

Up until now, Ripple had been releasing 1 billion XRP every month, a tradition that started in May 2024, while more than 43 billion XRP remain locked up in escrow until December 2027.

In fact, the organization believes its approach will ensure gradual control dilution and further decentralization of its network. Ripple’s willingness to sell has recently drawn investors’ attention because such sales affect XRP’s price.

XRP is currently trading at $0.54. Chart: TradingView

Analysts are still divided about what could be the future of XRP. A few believe there could be a spike, similar to the exponential jumps in price that were seen in 2020, while others anticipate a flat, if not, stagnant trajectory.

Wider Ramifications For The Crypto Market

Were XRP to break out from the shackles of its current trading patterns, some estimates put it as high as $4. This optimism is predicated on market demand and overall resilience in the crypto market.

What Ripple is doing has effects that could spread well beyond just XRP in the market. More broadly, cautious optimism continues to define the crypto market while many investors remain in wait-and-see mode until clearer signs of an altcoin season materialize.

Featured image from Nature, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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