A first: Ripple (26) and Ripple (27) to unlock 1B XRP worth $3B in Feb 2025

Ripple Labs, the developers of the XRP token and XRP Ledger (XRPL), is set to unlock 1 billion XRP tokens on February 1, 2025. The unlock event will release approximately $3.10 billion worth of cryptocurrency into the market. 

According to recent reports, the scheduled release set to take place on a Saturday takes place for the first time from Ripple’s accounts labelled ‘Ripple (26)’ and ‘Ripple (27)’. It will follow a pattern of monthly unlocks from Ripple’s escrow accounts but marks a transition from the previous accounts ‘Ripple (24)’ and ‘Ripple (25)’.

The breakdown of the February 2025 unlock involves two separate escrows from the ‘Ripple (26)’ account: one containing 400 million XRP and another holding 100 million XRP. ‘Ripple (27)’ account will release 500 million XRP. 

Ripple continues with a “first day of the month” token unlock schedule

Ripple’s methodical unlock system is part of a strategy that has been in place since 2017 when the company implemented an escrow system to gradually release XRP.  

In 2012, when the crypto was first launched, the company retained 80 billion XRP and kept the tokens out of circulation. Ripple then started releasing the reserved coins gradually until the tally dropped to 55 billion. 

About five years later, the RLUSD issuer implemented an escrow system designed to ensure that the distribution of these tokens occurs once every month to prevent market instability.

Historically, Ripple has consistently unlocked 1 billion XRP on the first day of each month. The company’s past behavior suggests it will reserve between 200 million and 470 million XRP from the February 2025 unlock to sell or distribute in the market, as it has done with previous releases. 

This month, for example, Ripple set aside 300 million XRP for operational expenses, partnerships and the development of the XRPL ecosystem.

Meanwhile, XRP continues to trade above the $3 level this week, although it briefly fell to $2.9 yesterday before quickly recovering to $3.13. The token is up by 2.5% from its previous close, with a $180 billion market cap, per Coingecko data.

Other token unlocks this week

According to the latest updates from Tokenomist, a supply-side tokenomics service provider, Optimism (OP), Sui (SUI), ZetaChain (ZETA), and DYDX will also be unlocking significant amounts of tokens at the end of this business week. These unlocks are scheduled to take place on Friday and Saturday, with a combined total of $330 million worth of tokens being released.

Optimism is set to unlock tokens worth $46.70 million, representing 2.32% of its circulating supply. Sui’s unlock is the largest, with $258.06 million worth of tokens, or 2.13% of its circulating supply, set to be released. ZetaChain and DYDX will unlock tokens worth $19.13 million and $8.76 million, respectively, representing 6.98% and 1.15% of their circulating supply.

These tokens will reportedly be used to fund various initiatives within their respective ecosystems, including user growth pools, ecosystem growth funds, contributor rewards, and liquidity incentives.