Ripple $2.2is preparing to release a total of 1 billion XRP on January 1, 2025. These releases, which are made regularly on the first of each month, are used to support Ripple’s operations and provide liquidity. However, market participants have a mixed attitude regarding the possible impacts on the XRP price. Looking at historical data, it is observed that these releases have minimal impact on the price.
Impact of Past Token Releases
Ripple had locked 55 billion XRP, approximately 55% of the total supply, in an escrow wallet. The release of 1 billion XRP every month has led to concerns that it could create selling pressure in the market. However, this effect was prevented by not entering the released tokens directly into the market.
Despite the massive release in December, the XRP price remained stable at around $1.8. This can be explained by the fact that the majority of tokens are used for liquidity and ecosystem development rather than the market. This strategy of Ripple stands out as an effective method to maintain price stability.
Upcoming Releases and Market Expectations
The planned release of 1 billion XRP on January 1, 2025 corresponds to approximately 1.75% of the total circulating supply. Ripple will use these tokens to support its operations, fund new partnerships and strengthen the ecosystem. Considering past practices, it is anticipated that some of the unlocked tokens will be re-locked.
This strategy of Ripple is aimed at providing liquidity without creating large-scale selling pressure in the market. This method works with a similar mechanism to stablecoin minting and has a minimal impact on the price. However, future price movements of XRP will largely depend on the performance of the overall cryptocurrency market and Bitcoin 
$95,362.8It seems like it will depend on ‘s actions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
