500 Million XRP Released: Impact on Crypto Market?

03 April, 2025, 08:29 AM

500 million XRP tokens were unlocked from Ripple's escrow on June 1, 2024, according to Whale Alert. This scheduled release is a recurring event, governed by a smart contract designed to systematically distribute XRP over time. What Happens to the Released XRP? Typically, released XRP is used for various purposes, including funding Ripple's operational expenses, supporting the XRP Ledger ecosystem, and potentially strategic sales or distributions to institutional partners. While a portion might be sold on the open market, Ripple often locks a significant amount back into new escrow accounts for future distribution. Potential Impact on XRP Price Large XRP releases can sometimes cause market volatility. The increased supply could, theoretically, put downward pressure on the price if demand doesn't keep pace. However, the actual impact depends on how Ripple manages the released tokens and overall market sentiment. ```