As 2023 concludes, Ripple may release over 96 million XRP from its main wallet address, the Ripple escrow system, designed to release 1 billion XRP monthly.
Key Takeaways
- Ripple may release over 96 million XRP from its main wallet by the end of 2023.
- The Ripple escrow system, established in 2017, releases 1 billion XRP monthly, with 80% re-locked.
- In December, Ripple spent 240 million XRP from its main wallet, leaving a balance of 96.34 million XRP.
- The potential sale of these XRP coins by Ripple is not expected to significantly impact the price.
Unlocking Ripple’s XRP Reserves
As 2023 approaches its end, attention turns to Ripple’s potential release of over 96 million XRP from its main wallet. To understand this, it’s crucial to delve into the Ripple escrow system established in December 2017.
This system aimed to bring stability to the XRP market by monthly releasing 1 billion XRP, of which 80% (800 million) is re-locked back into escrow.
In its routine procedure, Ripple channels the remaining 20% (200 million) XRP to its main wallet, aptly labeled “Ripple 1.” From here, the tokens are distributed to various unlabeled addresses before eventually reaching centralized exchanges for blind bid/ask transactions.
Ripple Could Dump Over 96M Liquid $XRP Before 2023 Ends. #Ripple #XRPNetwork https://t.co/mOkSJj0BaK
— TheCryptoBasic (@thecryptobasic) December 26, 2023
December Spending and Remaining Liquid XRP
In December 2023, Ripple executed its regular process by sending 200 million XRP from one of its wallet addresses, “Ripple 22,” to the main spending account. Subsequently, in three transactions, Ripple Offloads millions of XRP, sending 60 million on December 6, another 60 million six days later, and concluding with 120 million on December 20.
As of the latest update, the main spending wallet holds 96.34 million XRP, valued at $59.73 million at the current price of $0.62 per coin. The decision to sell or retain these coins remains at Ripple’s discretion, with potential implications for market dynamics.
Ripple’s Escrow and Future Unlocks
While Ripple holds 96.34 million liquid XRP, its escrow account maintains a substantial reserve of 40.7 billion XRP. The company will continue unlocking hundreds of millions from escrow until 2027. Originally, the plan was to release 1 billion XRP monthly from the 55 billion tokens locked in escrow for 55 months. However, ongoing success has led to re-locking hundreds of millions, extending the deadline to 2027.
To Conclude
As Ripple contemplates the release of over 96 million XRP from its main wallet by the year’s end, the cryptocurrency community watches closely. Despite potential sales, the market impact is anticipated to be minimal.
Ripple’s strategic use of the escrow system, coupled with ongoing unlocks until 2027, underscores the company’s measured approach to managing its substantial XRP reserves.
