Ripple Unlocks 1 Billion XRP Amid Market Weakness What It Means for Investors

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Ripple Unlocks 1 Billion XRP

The post Ripple Unlocks 1 Billion XRP Amid Market Weakness What It Means for Investors appeared first on Coinpedia Fintech News

The crypto market is going through a nervous phase, and Ripple’s latest token unlock has come right in the middle of it. With Bitcoin struggling below $108K and most altcoins bleeding red, Ripple Labs has released another 1 billion XRP from escrow for November, a move that has drawn mixed reactions from investors already watching XRP’s price slip near $2.41.

Ripple XRP Unlock as Scheduled

According to Whale Alert, Ripple unlocked 1 billion XRP (worth roughly $2.4 billion) from three different escrow contracts on November 1. The first batch of 200 million and the second of 300 million XRP were sent to unknown wallets, while the remaining 500 million XRP went to Ripple’s known treasury wallet.

This monthly release isn’t new, it’s part of Ripple’s plan dating back to 2017, when it locked 55 billion XRP in smart contracts to manage token supply transparently. Each month, Ripple unlocks 1 billion XRP and often re-locks the unused portion. After briefly adjusting its schedule earlier this year, Ripple returned to its normal pattern in July and has continued the same process through to November.

Ripple Stays Focused on Growth Amid Market Fear

Despite the bearish market, Ripple seems to be playing the long game. The company has been pushing hard to expand its ecosystem and increase XRP’s real-world use cases. Ripple President Monica Long recently pointed to Ripple’s acquisition of Hidden Road, a top non-bank prime broker, as a major step toward strengthening Ripple Prime, which serves institutional investors.

Since that acquisition, Ripple Prime’s business has tripled, showing growing confidence among big players. Long also revealed that Ripple plans to deepen the integration of XRP and RLUSD (its stablecoin) into institutional services, a move aimed at boosting both liquidity and utility.

Unlocking XRP in a Bear Market Risk or Strategy?

While Ripple’s escrow unlocks are meant to support liquidity, they often create short-term selling pressure, especially when the broader market is weak. Still, there’s a silver lining. Unlocking XRP during a Bitcoin dip can be a strategic move, like restocking when the market is quiet. If Ripple channels these tokens into meaningful partnerships or ecosystem expansion, it could help stabilize and even strengthen XRP’s long-term position, despite current volatility.

XRP Current Sentiment

XRP is currently trading at $2.41, with about 60.1 billion tokens in circulation out of a total supply of 100 billion. The token has come a long way since its all-time low of $0.0028 in 2014, showing a massive recovery of over 85,000%, though it still sits about 37% below its 2018 peak of $3.84. 

The 50-day simple moving average (SMA) stands at $2.71, slightly above the 200-day SMA of $2.62, suggesting that XRP’s short-term trend remains slightly weaker but overall steady in the broader market context.

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FAQs

Why did Ripple unlock 1 billion XRP this month?

Ripple unlocks 1 billion XRP monthly as part of its long-term escrow plan to manage supply and ensure liquidity for ecosystem growth and partnerships.

Does the XRP unlock cause the price to drop?

Large unlocks can create short-term selling pressure, but their real impact depends on overall market sentiment and how Ripple uses the released tokens.

How does Ripple’s escrow system work?

Ripple locked 55 billion XRP in smart contracts, releasing 1 billion each month. Unused tokens are often re-locked to maintain a transparent supply process.

Is XRP still a good investment after the latest unlock?

XRP’s price may face short-term swings, but its growing utility, institutional use, and Ripple’s steady expansion support its long-term potential outlook.

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