Ripple kept 200 million XRP liquid after unlocking its monthly 1 billion tokens within the escrow system. So far, on December 13, the largest XRP Ledger (XRP) holder has already spent 120 million ($73.8 million) out of the total kept this month.
Notably, these unlocks have happened since 2017 because Ripple received 80% of all the XRP tokens created in 2012. After each monthly unlock, the company sells an arbitrary amount of the available tokens, added to its circulating supply.
This is what constitutes XRP’s supply inflation, which directly impacts price projections for the digital asset. Essentially, this inflation is also what mostly funds Ripple’s endeavors and revenue.
Ripple moves 120 million XRP in a possible sell-off in December. Source: Finbold
Finally, an unknown amount reached previously used exchanges like Bitstamp, Bitso, Independent Reserves, and BTC Markets. The deposits were also made in multiple smaller transactions constantly happening since the beginning of December.
It is certain that the increased selling pressure of newly unlocked tokens impacts order books and XRP’s price. Investors must remain aware of Ripple’s spending and consider the supply inflation impact on their holdings.
Particularly, XRP would trade at $2.39 per token if it reaches the all-time high market cap of $128.498 billion. A loss of $1.45 (37.7%) from the previous price of $3.84 in 2018 facing a similar demand.
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