$600M XRP Token Release Marks $1.5B in August Crypto Unlocks

XRP leads August's crypto token unlocks with a $600 million release, contributing to a total of $1.5 billion in unlocked tokens this month.

Massive XRP Unlock Kicks Off August

August is set to witness significant crypto token unlocks, totaling nearly $1.5 billion. The month began with a substantial release of 1 billion XRP tokens, valued at approximately $609 million, on August 1.

Ripple, the organization behind the XRP Ledger blockchain, has maintained a consistent schedule of unlocking up to 1 billion XRP tokens on the first day of each month since 2017. This release strategy utilizes various main escrow wallets, such as Ripple (24) and Ripple (25), to distribute the tokens evenly.

Despite the substantial release, Ripple often re-locks a significant portion of the newly unlocked XRP. For instance, in June, Ripple re-locked 800 million XRP but proceeded to sell around 300 million XRP, worth $182 million at the time, based on data from TradingView.

Ripple's Re-Escrow Process

While Ripple unlocks up to 1 billion XRP tokens monthly, the actual amount entering circulation tends to be much lower due to the re-escrow process. According to a 2017 blog post by XRP Ledger, this mechanism ensures that not all unlocked tokens flood the market simultaneously.

Aside from XRP, other notable crypto projects are also set to release significant token amounts in August. Layer-1 network Avalanche and cross-chain bridging platform Wormhole will collectively unlock $449 million worth of tokens, according to Token Unlocks data.

On August 3, Wormhole will release 33.3% of its circulating supply, totaling 600 million Wormhole (W) tokens, currently valued at $180.5 million. This follows Wormhole's highly anticipated airdrop launch on April 4.

Avalanche is scheduled to unlock 2.4% of its circulating supply on August 20, releasing 9.4 million AVAX tokens with a current market value of $268 million.

Additional Token Releases on August 1

The first day of August also saw substantial unlocks from other projects. Layer-1 network Sui, decentralized exchange dYdX, and the "universal" blockchain ZetaChain each released significant portions of their token supplies.

Sui unlocked 2.56% of its circulating supply, equating to 64 million tokens valued at $50 million. DYdX released 8.33 million tokens, worth nearly $11 million, representing 3.65% of its circulating supply. These tokens are allocated to investors, founders, staff, and future employees.

ZetaChain, a new layer-1 network, unlocked nearly 18.9% of its circulating supply, releasing 53.9 million ZetaChain (ZETA) tokens with a market value of around $34.5 million. This follows its launch in February.

Upcoming August Unlocks

Several other projects are also set to unlock tokens throughout August. On August 9, crypto gaming network ImmutableX will release 2.11% of its circulating supply, amounting to 32.5 million Immutable (IMX) tokens, currently valued at $49 million.

Aptos, a rival to Sui, will unlock $80 million worth of its native Aptos (APT) token on August 12. Web3 gaming platform The Sandbox will release $69 million worth of its native The Sandbox (SAND) tokens on August 14.

Two Ethereum layer-2 networks, Starknet and Arbitrum, will also release tokens in mid-August. Starknet will unlock 64 million Starknet (STRK) tokens on August 15, representing 4.4% of its circulating supply and valued at $35 million. Arbitrum will follow on August 16, unlocking 92.6 million Arbitrum (ARB) tokens, amounting to 2.8% of its circulating supply and valued at $67 million.

The extensive token unlocks throughout August highlight the ongoing development and distribution strategies within the cryptocurrency market, potentially impacting liquidity and market dynamics across various blockchain projects.