XRP news today: Ripple Unlocks 1 Billion XRP Tokens, Price Drops 2.78%

Ripple Labs is set to unlock 1 billion XRP tokens on May 1, valued at over $2.2 billion. This significant increase in supply could temporarily exert downward pressure on the price of XRP, which has already experienced a 2.78% decline in the past 24 hours, bringing its price to $2.23.

Despite the recent mild uptrend in XRP's price since mid-April, reaching temporary highs near $2.30, the impending unlock of 1 billion XRP tokens could exacerbate the existing downtrend. The unlocked tokens are part of Ripple's long-term strategy and escrow system, which typically does not have a substantial impact on the token's price. However, the sudden influx of supply could temporarily affect market dynamics.

In the May cycle, two Ripple wallets will become active after years of being locked: Ripple (26) and Ripple (27). The former contains two escrows scheduled to unlock with 200 million and 300 million XRP, while the latter has one batch of 500 million tokens. This unlocking process is part of Ripple's standard practice, where the majority of the tokens are relocked after some are allocated for operational and similar uses, limiting the long-term price impact.

While the potential downward pressure on XRP's price could be short-lived, it is important to consider the numerous other factors influencing the token's price in 2025. External developments, such as the unpredictable yet escalating trade war and Bitcoin's market moves, have had a significant impact on XRP's price. Additionally, the Securities and Exchange Commission's decision to postpone its ruling on Franklin Templeton’s spot XRP exchange-traded fund could prove bearish, despite the SEC's current setup being nominally crypto-friendly.

In summary, while the unlocking of 1 billion XRP tokens on May 1 could temporarily exert downward pressure on the token's price, the impact is likely to be short-lived. Ripple's standard practice of relocking the majority of the tokens and the numerous other factors influencing XRP's price in 2025 suggest that the long-term price impact will be limited. Investors and traders should monitor the market closely and consider the various factors at play when making investment decisions.

Ask Aime: Will Ripple's 1 billion XRP unlock exert downward pressure on XRP price?