On January 1, 2025, Ripple plans to release 1 billion XRP from its escrow wallets in three transactions, worth over $2 billion at current prices. This release represents **1.74% of the current circulating supply** and **2.63% of the remaining locked tokens**.
The escrowed funds, held by Ripple-controlled wallets, include **200 million XRP** and **300 million XRP** locked in December 2020 and January 2021. These locks are set to reach finality on December 31, 2024.
The release raises important questions for the market:
- **Market Dynamics**: Will this supply increase lead to downward pressure on XRP’s price?
- **Use of Funds**: Ripple has historically allocated escrowed XRP for partnerships, ecosystem development, and liquidity.
- **Market Sentiment**: Will investors view this as a dilution or as a sign of Ripple's growth plans?
Ripple’s unlocking mechanism is a regular occurrence, but with the SEC case resolved and increasing institutional interest, the impact of this release could be different. Investors will be closely watching how Ripple allocates the funds and the market’s response in early 2025.$XRP