The cryptocurrency market is characterized by the potential for significant fluctuations over short periods. Experienced holders of digital coins take this risk into account. Owners of so-called inflationary tokens or those whose supply is controlled by companies are in a particularly challenging situation. This is because the entity holding the majority stake usually makes regular dumps of new coins into the market. Among these cryptocurrencies is XRP, which floods the market with millions of new tokens every month. Ripple is preparing for another major unlocking that will flood the market.
XRP will flood the market on April 1 with a billion tokens. Should we be concerned?
For XRP fans, the news that Ripple will unlock another large amount of tokens is nothing new. The company makes such a move regularly on the first day of each new month. In April, a billion new coins will hit the market, which according to the current valuation of XRP will be worth 2.34 billion. Ripple still controls over 50% of the supply.
It is therefore not surprising that the company will again flood the market with new tokens. However, it is unclear what will cause this move. Usually, when there is high demand for XRP, unlockings satisfy the market's appetite. In the case of a crisis and lack of buyers, new batches from Ripple could lead to a decrease in the value of the cryptocurrency. How will it be this time?
The answer to this question is not simple. A few days ago, Ali Martinez presented a report on whale activity over the past week. It shows that over the last seven days, whales have been dormant — neither buying nor selling significant amounts of the token.
At the time of writing, XRP costs 2.34%, and over the last 24 hours, it has lost 0.34% of its value. Over the past week, the cryptocurrency has fallen by 8.06%. However, during the last month, the coin has increased by 2.94%. Interestingly, despite the crisis, Ripple has gained 13.01% since the beginning of the year.
This data is intriguing. It seemed that after the conclusion of the SEC dispute with Ripple, the price of the cryptocurrency would explode, and whales would be scrambling to get their hands on this token. Meanwhile, we are observing a puzzling stagnation. It is unclear whether this signals a retreat or a delayed explosion in value.