Ripple, the core developer of XRP Ledger, is set to unlock 1 billion XRP on September 1. This monthly unlock is part of Ripple’s token distribution and has been known to precede a drop in price. The nominal value of the unlock is $570 million, and a portion of it will likely be sold in the coming days.
Data from XRPScan shows that the unlocking process will involve two transactions. The first transaction will unlock 500 million XRP, while the second transaction will unlock 200 million and 300 million XRP.
Ripple has been using these labeled accounts for monthly unlocks since May 2024. Prior to that, different accounts were used. There are still over 43 billion XRP locked in escrows for future unlocks until December 2027.
In August, Ripple unlocked 1 billion XRP, worth approximately $600 million. The company kept 200 million XRP in its treasury account and re-locked the remaining 800 million tokens until 2027.
It is worth noting that Ripple’s monthly sell-offs have historically impacted the price of XRP. In the months following previous unlocks, XRP experienced losses in four out of eight cases. However, there were gains in February and July, and neutral performance in the remaining months.
XRP investors should pay attention to Ripple’s selling activities as they can have a significant impact on the token’s price. However, if there is enough demand, XRP still has the potential to perform well.