Ripple Set to Unlock 1B XRP Tomorrow—Will Short-Term Sell Pressure Hit the Market?

Ripple will release 1 billion XRP tokens on May 1, worth $2.2B. While price pressure is possible, experts expect the impact to be short-lived due to relocking practices and broader market trends.

Ripple Labs is preparing to unlock 1 billion XRP tokens from escrow on May 1, a scheduled move that aligns with the company’s long-term strategic framework. However, the event has arrived at a precarious time for XRP, as the token faces a 2.78% dip over the last 24 hours, currently trading at $2.23 after peaking at $2.30 mid-April.

While Ripple’s monthly unlocks have become routine—rarely shocking the market—the magnitude of the release and the timing amid an active correction could add fuel to short-term bearish sentiment.

This round of unlocks reactivates two wallets—Ripple (26) and Ripple (27)—which have remained dormant for years. Wallet (26) holds two escrows scheduled to release 200 million and 300 million XRP, respectively, while wallet (27) is set to unlock 500 million tokens. In total, over $2.2 billion worth of XRP will be made liquid.

Yet analysts suggest the market may not need to panic.

Temporary Shock, Not Lasting Pressure
Historically, Ripple re-locks the majority of unlocked XRP after allocating a portion for operational or strategic needs. Thus, while a temporary surge in circulating supply could exacerbate the current downtrend, the effect is likely to be short-lived.

Market sentiment is being influenced by more significant macro events, such as continued volatility in the crypto space led by Bitcoin (BTC), and geopolitical uncertainties like Trump’s emerging trade war policies, which have already shifted investor behavior in recent weeks.

ETF Decision Postponement Adds Complexity
To further complicate the landscape, the U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding Franklin Templeton’s proposed spot XRP ETF. Though the SEC has become marginally more crypto-tolerant, the delay may signal hesitancy, potentially creating short-term headwinds for XRP’s institutional outlook.

Nonetheless, with Ripple’s consistent history of managing unlocked XRP and broader market factors at play, experts remain confident that this upcoming supply injection, while notable, is unlikely to derail the coin’s long-term trajectory.

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