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400 Million XRP Unlocked, Ripple’s Strategic Power Boost for Future Use

2 mins mins
400 Million XRP Unlocked, Ripple's Strategic Power Boost for Future Use

Key Points:

  • Ripple unlocks US$1.136 billion worth of XRP tokens, making a significant move in the market.
  • Only 20%-25% of unlocked XRP will enter the market, ensuring stable pricing.
  • The remaining XRP unlocked is re-locked and delayed until next month to maintain stability.

According to Whale Alert, a significant event occurred today as 400 million XRP tokens, valued at approximately US$1.136 billion, were unlocked.

400 Million XRP Unlocked

However, while this amount of XRP unlocked, it’s important to note that not all of it will be introduced into the market immediately. Ripple has established a straightforward practice of retaining control over its unlocked tokens to maintain market stability.

Ripple only uses a portion of the XRP unlocked — often around 20% to 25% — for market sales, while the remaining tokens are re-locked back into a custody account. This process helps to avoid flooding the market with an excessive supply of XRP, which could negatively impact its price.

Read more: Grayscale XRP ETF Has Now Filed With the SEC

Strategic Re-locking of Unlocked XRP Tokens

The portion that is re-locked is delayed until the following month, ensuring Ripple can carefully manage its available tokens while maintaining consistent market behavior. This strategic approach is designed to prevent the sudden influx of large amounts of XRP from destabilizing the market or causing sharp fluctuations in price.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Avatar of Yuna Kim

Yuna Kim

02 February 2025, 16:58:15 GMT +0000

With a deep passion for unraveling the complexities of finance and crypto, I have dedicated over 5 years to financial journalism, covering everything from traditional equities to the forefront of venture capital. I believe that crypto is a fascinating puzzle, and I thrive on helping people make sense of it.

As a journalist at Coincu, my mission is to deliver clear, insightful, and well-researched content that empowers readers to navigate the ever-evolving financial landscape with confidence.

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