1 Billion XRP Will Be Unlocked by Ripple on January 1, 2025, What Will Happen Next?

On January 1, 2025, Ripple will unlock 1 billion XRP tokens from its escrow system, continuing its monthly practice aimed at maintaining liquidity and fostering adoption. This event, executed via the XRP Ledger, will release over $2 billion worth of XRP in three transactions: 200 million, 300 million, and 500 million XRP, representing a significant moment for the XRP ecosystem.

Breakdown of the January Unlock

Percentage of Supply

The January unlock accounts for 1.74% of the current circulating supply of 57.25 billion XRP.

It represents 2.63% of the remaining 38 billion XRP tokens still locked in Ripple-controlled escrows.

Escrow Origins

Ripple (24) will release 200 million XRP (locked in December 2020) and 300 million XRP (locked in January 2021). This marks the final unlock for Ripple (24).

Ripple (25) will release 500 million XRP (locked in January 2021), also concluding its obligations under this escrow.

Despite these finalizations, Ripple still controls numerous other escrows, ensuring continued future unlocks.

Historical Context: December 2024 Unlock

In December 2024, Ripple unlocked 1 billion XRP, but only 200 million XRP was distributed through Ripple (1) for sales or strategic use. The remaining 800 million XRP was re-locked in two escrows set to expire by February 2028.

Ripple has frequently employed such strategies.

• Reserving unlocked XRP for further distribution.
• Conducting large-scale sales, as evidenced by the December sale of 500 million XRP from previously unlocked reserves.

This aggressive approach was similarly seen in November 2024, when Ripple executed its largest monthly XRP sale in seven years, moving 470 million XRP from ‘Ripple (1)’ to other wallets and eventually selling them.

Sales and Market Dynamics

Ripple’s XRP sales have been substantial in 2024.

• Over 3.246 billion XRP sold year-to-date from the Ripple (1) reserve account alone.
• Additional sales from Ripple (50), Ripple (29), and other wallets pushed cumulative sales above $6.5 billion at XRP’s trading price above $2.

Implications for XRP Price and Market

Ripple’s token unlocks and sales strategies present both opportunities and challenges for XRP.

Increased Supply Pressure: Large-scale sales, such as November’s 470 million XRP dump, create significant selling pressure. Without proportional demand, this can strain XRP’s price stability.

Demand Sustainability: Ripple’s reliance on its On-Demand Liquidity (ODL) model mitigates some risks by selling at market price to willing buyers, reducing the impact of sell walls. However, continued adoption of ODL is essential to absorb the volume Ripple introduces into circulation.

Long-Term Strategy: Ripple’s escrow re-locking mechanism ensures a controlled release of tokens over time. By re-locking 800 million XRP in December, Ripple demonstrated its ability to balance liquidity needs with long-term planning.

The Road Ahead

Ripple’s January 2025 unlock highlights the company’s strategic balance of liquidity injection and market participation. However, its aggressive sales practices necessitate a sustained increase in demand through:

• Broader adoption of XRP for cross-border payments.
• Expansion of the ODL model.
• Continued partnerships with financial institutions and enterprises.

With XRP trading above $2, Ripple’s actions will likely remain under scrutiny by the market, especially as token unlocks and sales continue to shape XRP’s price trajectory and overall ecosystem health.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

How to Stake XRP (XRP)

XRP to USD: Convert Ripple to US Dollar

FAQs

1. What does Ripple’s January 2025 XRP unlock entail?
Ripple will release 1 billion XRP tokens from escrow on January 1, 2025, as part of its scheduled monthly unlocks. This release, amounting to over $2 billion, will occur in three transactions: 200 million, 300 million, and 500 million XRP. The event aims to provide liquidity and support XRP adoption.

2. How could the 1 billion XRP unlock impact XRP’s price?
The market impact depends on how Ripple utilizes the unlocked tokens. Large-scale sales can increase supply pressure, potentially affecting price stability. However, if demand from Ripple’s On-Demand Liquidity (ODL) partners and broader adoption grows, the price impact may be mitigated.

3. What is Ripple’s strategy for handling unlocked XRP?
Ripple often reserves a portion of the unlocked XRP for future use and re-locks unsold tokens into escrow for later release. For instance, in December 2024, Ripple re-locked 800 million XRP while selling a substantial portion to support liquidity and strategic initiatives. This approach aims to balance market stability with long-term ecosystem growth.

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