Ripple has unlocked approximately 1 billion XRP from escrow on February 1, maintaining its established monthly release schedule. This move follows a disappointing performance for XRP in January, where the token experienced a decline exceeding 10%. The bearish sentiment continued into February, with prices slipping further as the entire cryptocurrency market faced downward pressure.
The recent unlock consisted of four transfers totaling 1 billion XRP, specifically 100 million, 400 million, 100 million, and 400 million XRP. At the time of the release, these transfers had a combined value of around $1.6 billion. According to on-chain analytics, Ripple”s monthly unlocks are part of a structured supply management approach initiated in 2017, which allows the firm to release up to 1 billion XRP each month in a transparent manner.
Typically, Ripple relocks between 60% and 80% of these unlocked tokens. This month was no exception, as the company successfully relocked 700 million XRP back into escrow across two transactions worth around $1.09 billion collectively. Consequently, a net total of 300 million XRP remains unlocked after all transactions.
As the broader cryptocurrency market continues to grapple with declining values, XRP has not been spared from this trend. Data from BeInCrypto Markets indicates that XRP“s value dropped by 10.6% in January, concluding the month at $1.50, marking its lowest point since the market turmoil in October. Just two days into February, XRP has already seen a further decline exceeding 6%, correlating with the downturn affecting major cryptocurrencies such as Bitcoin and Ethereum.
At the time of writing, XRP was trading at $1.57, reflecting a nearly 5% decrease over the past 24 hours. Analysts are divided on the potential for recovery or continued declines. One analyst suggested that XRP may follow a long-established cycle, indicating that a major rally could still be years away. Historical patterns suggest that XRP often undergoes prolonged consolidation phases before experiencing significant upward movements.
Conversely, another analyst noted that XRP currently appears to be in a re-accumulation phase, which could set the stage for future upward momentum. Amidst these discussions, David Schwartz, a key architect of the XRP Ledger, provided a more cautious outlook on the optimistic price predictions circulating within the community. He expressed skepticism regarding the likelihood of XRP reaching significantly higher price points in the near future, suggesting that market pricing reflects a more tempered consensus among investors.
In summary, while Ripple”s release of 1 billion XRP is a routine aspect of its operational framework, the ongoing price challenges highlight the complexities faced by the cryptocurrency market as a whole.
