Ripple is set to execute what could be its final XRP sale of the year, following a significant token unlock in December. On Sunday, the company allocated 200 million XRP from the 1 billion tokens unlocked this month, signaling readiness for a substantial sell-off.
Ripple’s December Allocation Explained
The 1 billion XRP unlocked this month was divided among three escrows from two Ripple-controlled accounts. Ripple (24) released 200 million and 300 million XRP, moving the smaller portion to Ripple (1), its treasury account. The 300 million tokens were locked back into an escrow set to mature in 2028.
Separately, Ripple (25) unlocked 500 million XRP and relocked the entire amount under another escrow, Ripple (13). These activities continue Ripple’s practice of managing token circulation through controlled releases.
How Much XRP Will Ripple Sell in December 2024?
The 200 million XRP reserved in Ripple (1), valued at $528 million, has been identified for potential sale. While the token count is not Ripple’s largest, this sale would represent its highest USD value to date.
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In comparison, November’s XRP sell-off involved 470 million tokens, averaging $0.55 each and totaling $258 million. Ripple’s year-to-date token sales exceed 3 billion XRP, yielding significant profits in 2024. Notably, only four months this year saw sales of 200 million XRP, with additional tokens sold in other months.
Ripple’s sales are typically executed through its On-Demand Liquidity (ODL) model, which involves selling tokens at market price to willing customers. While the model supports demand-driven transactions, it also impacts market liquidity by absorbing much of the buying pressure on exchanges.
Impact on XRP Investors and Circulating Supply
XRP holders are advised to monitor Ripple’s accounts for signs of token unlocks and sales. Each unlock increases XRP’s circulating supply, creating potential dilution unless matched by proportional market demand.
As Ripple concludes 2024, the company’s sales strategy and its implications for XRP’s market dynamics will continue to draw attention from the crypto community.
