Ripple has announced that it will release 1 billion XRP tokens, valued at $520 million, on June 1. This regular procedure could potentially impact XRP's price negatively.

May Events for XRP

Since 2017, Ripple has been releasing 1 billion tokens each month from escrows. XRPScan reports that until April, the addresses ‘Ripple (22)’ and ‘Ripple (23)’ were used. In May, new addresses ‘Ripple (24)’ and ‘Ripple (25)’ took over this role. These addresses will continue to release 1 billion XRP each month until January 2025.

On May 1, Ripple unlocked 1 billion XRP from these new addresses. They sold 200 million tokens to cover expenses, while the remaining 800 million were re-locked until September 2027.

From the ‘Ripple (24)’ address, 200 million XRP were sent to the treasury address ‘Ripple (1)’. On May 13, Ripple sold 150 million XRP, releasing 75% of the planned amount. By May 24, Ripple sold the remaining 50 million XRP, completing the sales for the month.

XRP Price Insights

The introduction of a large supply raises concerns about its impact on XRP’s price. Historical trends show that XRP prices tend to fall during these sales periods.

In 2024, only 5 out of 12 monthly sales saw positive price movements. The other seven months experienced price declines, making these sales periods critical for investors.

During the first five months of 2024, XRP saw price drops in the first three months. After the 1 billion XRP release on May 1, the price remained stable.

Currently, XRP is priced at $0.5174, marking a 0.73% decrease over the last 24 hours. The market cap has dropped to $28 billion, and the 24-hour trading volume has fallen by 5% to $1.254 billion.

In conclusion, Ripple’s monthly release of 1 billion XRP tokens is a standard practice that could influence the price. Investors remain vigilant during these periods, closely monitoring price movements.