On January 1, 2025, Ripple initiated its first major token release of the year, reserving 300 million XRP out of the 1 billion tokens unlocked. This move follows a monthly distribution pattern stemming from XRP’s genesis allocation, where 80% of the token’s supply was reserved for Ripple.
As previously highlighted, Ripple concluded 2024 with its largest XRP dump to date. The company sold 470 million XRP in November and an additional 200 million XRP in December. Continuing this trend, Ripple transferred 300 million tokens to the ‘Ripple (1)’ account, as verified by XRP Scan. These tokens were sourced from the ‘Ripple (24)’ account, which held a 500 million XRP escrow for January 2025.
Looking ahead, the remaining 700 million unlocked XRP from January’s escrow are expected to reach finality by March 2028. Notably, this month’s unlock represents the last escrows from ‘Ripple (24)’ and ‘Ripple (25).’
Ripple’s XRP Dumps in 2024
In 2024, Ripple released a total of 3.22 billion XRP via the ‘Ripple (1)’ account alone. Additional reports suggest that even more tokens may have been sold through alternative accounts. At current prices, the nominal value of these sales amounts to $7.50 billion, with XRP trading at $2.33. However, a significant portion of these sales occurred when XRP’s price hovered around $0.50 throughout much of 2024.
Ripple’s token dumps have substantial implications for the broader cryptocurrency market, often exceeding industry norms. For comparison, the Ethereum Foundation’s annual ETH sales budget is approximately $100 million—a figure that already influences the market. This disparity is striking, given Ethereum’s market capitalization is three times greater than XRP’s, yet its annual sales budget is 75 times lower.
Ripple’s Selling Model
Ripple employs an On-Demand Liquidity (ODL) model for its XRP sales, providing tokens at market price to willing buyers. While this approach aligns with market demand, it also absorbs significant buying pressure from exchanges, potentially diluting the order books and impacting XRP’s market performance.
Monitoring XRP Unlocks
XRP investors are advised to keep a close eye on Ripple’s account activities to anticipate future sales and unlocks. Each escrow release inflates XRP’s circulating supply, necessitating a proportional increase in demand to maintain price stability. Understanding these patterns is critical for investors aiming to navigate the potential impacts on their holdings.
Ripple’s ongoing XRP distribution strategy underscores its influence within the crypto market, making these developments crucial for the industry’s participants and observers alike.
