XRP Token Unlocking May 1, 1 Billion Tokens, 32% Open Interest Surge

In the latest developments surrounding the XRP token, reports indicate that a new batch of XRP tokens is set to be unlocked in early May. This news has raised concerns among some investors who fear that the increased supply could negatively impact the token's price. However, it is important to note that such token releases have been a regular occurrence over the past few years, happening on a monthly basis. Additionally, market data reveals that the token's open interest and user activity are on the rise, suggesting a potential increase in value in the near future.

According to the reports, 1 billion XRP tokens are scheduled to be unlocked on May 1. This amount is valued at approximately $2.19 million and will be added to the market. While this figure may seem alarming, it is essential to understand that the unlocking of Ripple coins has been a consistent process for several years. The tokens will be released through escrow accounts, and only a small portion will be used for operational expenses. The majority of the released coins will be returned to the escrow accounts, thereby mitigating any significant impact on the XRP price performance.

Two main wallets will be responsible for the release of these tokens. One wallet will release nearly 200 million and 300 million XRP tokens through two escrows, while another wallet will release the remaining 500 million XRP. Although this release may not directly affect the XRP price, some community members have expressed concerns. They argue that the cumulative releases could lead to a decrease in value as the supply increases without a corresponding rise in demand. This concern arises at a time when the open interest for XRP is increasing, indicating a positive market sentiment.

The XRP/USDT chart shows that the token's open interest has surged from $3.14 billion to $4.13 billion since April 21, marking a nearly 32% increase in just two days. This metric, which measures the number of futures contracts, suggests that derivatives traders are becoming more active. However, the market data indicates that most of these new contracts are shorts, signaling a bearish sentiment. Despite this, other indicators point to a neutral market sentiment, as the funding rate has remained near zero. The aggregated spot tape cumulative volume delta, which reflects the net difference between aggressive buy and sell orders across all markets, shows a score above zero, indicating increasing buying pressure.

In addition to these technical indicators, there are several fundamental developments that could support the growth of the XRP price. One significant change is the appointment of Paul Atkins as the new SEC chair, known for his crypto-friendly stance. This development has sparked optimism within the community, as it increases the likelihood of a favorable agreement between Ripple and the SEC. Such positive news could drive the XRP token to new value highs. It has also been predicted that the SEC would wait for its new chair before making any decisions on agreements.

Following these positive fundamental changes, the number of active XRP addresses has also been increasing. From April 19 to 20, there was a nearly 67.5% rise in active addresses. This surge comes ahead of the anticipated launch of more XRP ETFs, which are awaiting SEC approval. These developments suggest a bullish outlook for XRP, with more positive changes on the horizon.