If you’re holding XRP, February 1st, 2025, is a date you need to mark on your calendar! Ripple is gearing up for its monthly escrow release
Ripple (XRP) is preparing for its monthly escrow release, where 1 billion XRP tokens will be unlocked on February 1st, 2025. This event has garnered significant attention within the crypto world. Before making any trades or jumping to conclusions, let's delve into the crucial details surrounding this highly anticipated occurrence.
Throughout the year, XRP is subjected to a structured monthly release schedule for its escrowed tokens. Every month, 1 billion XRP is released from Ripple's escrow accounts, as part of its planned token release program. This is a routine event that usually unfolds without much surprise. However, this time, the release will originate from newly designated escrow accounts, Ripple 26 and Ripple 27, making it a noteworthy development for investors.
One crucial detail that investors must note is that although 1 billion XRP will be unlocked, a large portion of these tokens is often re-escrowed, which ultimately reduces the actual circulating supply. For example, in January 2025, around 700 million XRP were re-escrowed. This mechanism helps prevent drastic fluctuations in the supply and ensures some degree of stability in the market.
The potential market impact of these unlocks is a subject of debate. Let's examine the perspectives from both sides.
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