Amid the digital asset markets’ overall downturn today, Ripple is set to have $500 million XRP unlocked as traders fear an impending fall. Indeed, the firm is set to commence with its monthly release of XRP from escrow. Indeed, May 1st is set to bring 1 billion in XRP tokens onto the market.
The process is nothing new to Ripple Labs. Specifically, the firm seeks to boost market liquidity to ensure cross-border transaction smoothness through the monthly release. Moreover, May’s iteration of the practice represents more than 1.8% of the circulating supply, and nearly 2.5% of all XRP in escrows controller by the firm.
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Ripple to Unlock 1 Billion XRP as Traders Worry
The digital asset market has undergone a massive decline in value for the entire digital asset market. Yet, with the industry’s market cap dropping 6%, Ripple (XRP) seems to be faring quite well. Over the last 24 hours, the asset is actually up almost 0.5% according to CoinMarketCap.
However, that may be set to change amid one of the company’s routine developments. Specifically, Ripple is set to unlock $500 million worth of XRP as traders worry about an impending price fall. Indeed, there is present concern over the downward pressure placed on XRP.
Also Read: Ripple Forges New Alliances in Japan Amidst Uptick
Such pressure could incite a drop that continues its monthly losses of more than 17%. Moreover, it could have the asset falling below the psychological $0.50 level with which it has matinainted for weeks. In response to the impending event, XRP has seen its trading volumes surge almost 30%.
All of those represent massive volatility for the asset. Yet, the biggest question pertains to whether or not the fears will manifest for investors. The presence of the unlock has many worries, but its routine nature may have it already priced into the market.
Only time will tell, but the reality is that May has not arrived with much optimism for a plethora of tokens. Moreover, the market sentiment could increase volatility for investors and showcase a much more unpredictable market overall.
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