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Ripple to Unleash $2 Billion XRP on New Year’s Day—What’s Next for the Market?
As we enter a new year, Ripple is set to release an enormous 2 billion XRP tokens from its reserve accounts. This massive injection of supply may have significant implications for the cryptocurrency market, particularly in light of recent price movements and market sentiment.
Historically, similar unlocks have had varying effects on the market. In November 2024, Ripple sold a staggering 470 million XRP, marking its largest dump in seven years. This aggressive selling strategy has led to challenges for XRP’s growth, necessitating proportionally higher demand to maintain current price levels.
In this context, it is crucial to consider the implications of the upcoming XRP unlock on January 1st. With Ripple having sold a staggering $6.5 billion worth of XRP in 2024 alone, there are concerns regarding the potential impact on the market’s momentum and overall sentiment.
Moreover, as we head into an impending altcoin season, predicted by VanEck experts to be in full force, any significant supply injection could potentially hinder XRP’s growth prospects. It is essential for investors to remain vigilant and monitor market developments closely to understand whether the upcoming unlock will have a lasting impact on XRP’s trajectory.
Ripple’s $2 billion XRP release coincides with the start of an altcoin season, which may not necessarily be beneficial for all participants in the cryptocurrency space.
Source: crypto-economy.com
