On Friday, Ripple continued its routine of unlocking 1 billion XRP from escrow, a practice that has become a monthly occurrence for the blockchain-based digital payments protocol company. Consistent with this established pattern, December saw Ripple strategically withhold 200 million XRP, transferring these funds between different crypto wallets to ensure liquidity in the market.
The latest release is part of a series of unlocking plans that Ripple has implemented to maintain supply and liquidity in the market. The allocation for December involves distributing portions of unlocked XRP to different wallets. For example, Ripple (11) received deposits due in April and May 2027, while Ripple (10) re-deposited a significant amount for May 2027.
Investors and market watchers pay attention to these monthly releases because they provide insight into potential trading volume changes and market behavior. The unlocking is considered to have a significant impact on supply inflation and could influence market price action.
Ripple has outlined future plans for similar unlocks from wallets such as Ripple (22) and Ripple (23), which will see an additional 3 billion XRP released into the market by March 2024. This continuity is expected to contribute significantly to ongoing supply inflation.
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