Is Ripple about to 'release coins' again? 1 billion XRP unlocked, is the market in a panic?
Tomorrow (May 1), Ripple will unlock 1 billion XRP as planned, with a market value exceeding $2.2 billion. As soon as the unlocking news broke, the market immediately showed fluctuations, with XRP dropping nearly 2.8% within the day. Many people are worried whether this is another signal of a 'dump'.
However, if you have been following XRP for a long time, you would know that this unlocking is not a spur-of-the-moment decision, but rather a custody release mechanism that Ripple set up years ago. Unlocking at the beginning of each month and then re-locking most of it has become a routine operation.
So, what is different this time?
The core issue lies in the 'revival' of two Ripple custody wallets. These two wallets contain funds of 200 million, 300 million, and 500 million XRP, transitioning from a locked state to active, raising market concerns over short-term supply pressure.
Bearish or bullish? Let's break it down:
Potential bearish factors:
An increase in supply coinciding with a market correction can easily be seen as a dumping signal, potentially prompting more speculators to take profits in the short term.
Franklin's XRP spot ETF approval has been postponed again by the SEC, weakening market sentiment.
Neutral to even bullish factors:
Ripple has consistently locked back most of the unlocked funds after the release, not actually putting all 1 billion onto the market.
The overall trend of XRP is still in a moderate upward range; as long as support holds, a short-term drop may actually present a buying opportunity.
The long-term logic remains unchanged: the pace of cross-border payment implementation is advancing, and the XRP ecosystem continues to expand.
The conclusion is simple: this is not the first unlocking, and it will not be the last. Rather than worrying about short-term fluctuations, the key is to consider Ripple's position in the global payment system and whether XRP can truly play the role of bridging value.
