- Ripple will unlock 1 billion XRP on May 1, which may cause short-term sell pressure on the token.
- However, the long-term impact should remain minimal, as Ripple typically relocks most XRP and broader market forces continue to shape the price.
Ripple is preparing to unlock a significant amount of XRP, worth over $2.2 billion, on May 1. While this move is part of the company’s long-term strategy, it could create temporary sell pressure on XRP, which is already experiencing a minor downtrend. Here’s a closer look at the potential impact of this scheduled unlock.
The Impact of Unlocking 1 Billion XRP
On May 1, Ripple will unlock 1 billion XRP as it activates two wallets—Ripple (26) and Ripple (27)—that have remained locked for several years.The Ripple (26) wallet contains two escrows set to unlock 200 million and 300 million XRP, while the Ripple (27) wallet holds 500 million tokens. The total unlock will inject significant supply into the market, possibly adding to the existing selling pressure that has seen XRP’s price dip by 2.78% recently.
This increased supply could exacerbate the downward trend in XRP’s price. As of now, XRP is trading around $2.23, having dropped from its recent high of $2.30. The timing of the unlock is particularly crucial, as the price could face additional downward pressure in the short term.
Short-Term Sell Pressure but Long-Term Stability
While the unlock may create some immediate pressure on the market, Ripple’s long-standing escrow system tends to mitigate any lasting impact. Historically, Ripple relocks a large portion of the unlocked XRP, keeping it out of immediate circulation.This strategy limits the long-term effects on the token’s price, as most of the supply remains controlled by Ripple.
Even if there is a brief decline in XRP’s price, it is likely to be temporary. The cryptocurrency market is influenced by a range of factors, including global events and regulations, which will continue to shape XRP’s performance in 2025.
External Factors at Play
Aside from the unlocking of XRP, other factors are playing a role in the token’s price movements. The ongoing volatility in the cryptocurrency market, including the effects of the Trump trade war and Bitcoin’s influence, adds to the unpredictability. Furthermore, recent developments with the Securities and Exchange Commission (SEC), such as the delay in ruling on Franklin Templeton’s spot XRP exchange-traded fund (ETF), could have a bearish impact on XRP in the near term.
The unlocking of 1 billion XRP on May 1 is likely to cause some short-term sell pressure, but the long-term effects will likely be minimal. Ripple’s careful management of its supply and the broader market dynamics will continue to play a significant role in XRP’s price trajectory in 2025. Investors should be prepared for some volatility, but the fundamentals of Ripple’s ecosystem remain strong.
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