Ripple releases 1 billion XRP amid historic XRP price breakout

One billion XRP tokens were unlocked by Ripple today, which could be worth $1.92 billion at the current price. This release is a standard operation where the San Francisco-based crypto company releases 1 billion XRP onto the open market every first month of the month. According to the original XRPL novel, Ripple is expected to unlock a total of 55 billion tokens from its escrow accounts, representing almost 55% of the total XRP supply. The aim of such a decision was to make the supply of XRP more predictable.

The cryptocurrency company currently has almost 37.24 billion tokens in its accounts. How many tokens are still on the market is still unknown and will be known when Ripple locks back unclaimed tokens.

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Given that XRP is currently one of the major newsmakers and headliners in the crypto market, such a move could trigger panic or at least volatility for the token. XRP ended November with a price increase of 283.9%, and the release of 1 billion tokens when the price of the token is at a seven-year high could be negative, especially for those unfamiliar with such nuances of the popular cryptocurrency’s tokenomics are.

XRP recorded a decline on the first day of December, but it was not that dramatic. Considering that the entire month of November was bullish for the token until the last day, the 2.4% drop in one day can hardly be considered significant. Additionally, according to Bitstamp, XRP is currently trading above its opening price of $1.93.

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Tomorrow is Monday and it will be possible to see how XRP behaves on higher volumes, but the beginning of the month is still a continuation of the party despite such eye-catching events for the token.