2025-01-04
January 1, 2025 – Ripple has
initiated its first major token sale of 2025, reserving 300 million XRP from
the 1 billion tokens unlocked at the start of the year.
This move aligns with the company's ongoing practice of monthly XRP sales, originating from its initial distribution strategy, which allocated 80% of XRP’s total supply to Ripple.
https://xrpscan.com/account/rBg2FuZT91C52Nny68houguJ4vt5x1o91m
According to blockchain data from XRP
Scan, Ripple transferred the 300 million XRP to its ‘Ripple (1)’ account from
the ‘Ripple (24)’ escrow account, which unlocked 500 million XRP for January.
The remaining 200 million unlocked
tokens were re-locked into a new escrow under the ‘Ripple (12)’ account,
continuing Ripple’s established pattern of token management.
Escrows and Future Token Unlocks
In addition to the ‘Ripple (24)’
activity, another 500 million XRP from the ‘Ripple (25)’ escrow account reached
its final unlock and was similarly re-locked into a new escrow under the
‘Ripple (13)’ account.
These remaining 700 million XRP from
the January escrows are now scheduled to reach finality by March 2028.
The January unlock marks the final
activity for escrows from the ‘Ripple (24)’ and ‘Ripple (25)’ accounts,
signaling a new phase in Ripple’s token management cycle.
2024: A Year of Major XRP Dumps
Ripple’s token sales in 2024 accounted
for 3.22 billion XRP through its ‘Ripple (1)’ account alone, with reports
suggesting additional sales from alternative accounts.
At an average trading price of $0.50
during 2024, the nominal value of these sales totaled approximately $7.5
billion, despite XRP currently trading at $2.33.
These sales represent a significant
impact on the crypto market, with Ripple’s yearly XRP sales vastly exceeding
industry standards.
By comparison, the Ethereum
Foundation’s annual sales of $100 million worth of ETH cause market ripples
despite Ethereum’s threefold larger market capitalization. Ripple’s XRP sales
budget, however, is 75 times higher.
Market Implications
Ripple’s sales operate through its
On-Demand Liquidity (ODL) model, which matches market prices and relies on
customer demand.
However, such large-scale token sales
raise concerns for XRP investors, as they can dilute the circulating supply and
pressure market demand to absorb the increased volume.
XRP holders are advised to monitor
Ripple’s escrow activities closely, as each unlock inflates the circulating
supply, impacting token value unless matched by proportional demand increases.
With 2025 off to a strong start for
Ripple’s token sales, the crypto community will be watching closely to gauge
the broader market impact of this year’s XRP dumps.