Ripple is releasing 1 billion tokens each month to fulfill a commitment it made in the past. In December, Ripple retained 20% of the 1 billion tokens, which is 200 million XRP, and released the rest into the market.
Tracking the 1 billion tokens Ripple releases each month has revealed situations that affect the long-term value of the asset. In December, it was reported that 200 million XRP, worth approximately $130 million, were held by Ripple.
The company illustrated this month’s sales activity with a chart. Notably, 200 million XRP were transferred from Ripple (22) to Ripple (1). Both cryptocurrency wallet addresses are controlled by the company.
Following a similar pattern in November and October, 1 billion XRP were unlocked from two addresses controlled by the company and distributed to three different addresses of equal size.
Interestingly, both the Ripple (22) and Ripple (23) addresses hold 3 billion XRP that will be unlocked monthly until 1 March 2024. The unlocking of these tokens is seen as a significant part of XRP’s supply inflation, and crypto investors should closely monitor such events to see their effects on prices.