Crypto
XRP Price Slumps 5% Amid Ripple's Monthly Token Unlock
XRP saw its price drop by about 5% in the past 24 hours to $1.31 on Wednesday, underperforming Bitcoin's 1.76% decline.
The downturn was largely driven by Ripple's monthly token unlock, which added supply pressure amid a broad risk-off market.
Ripple unlocked 1 billion XRP from escrow on September 1, as part of its regular monthly schedule.
This event has historically been followed by tokens being re-locked, but the current situation introduces potential supply overhang and selling pressure.
The decline in XRP's price was exacerbated by overheated derivatives, with CME XRP futures open interest surging 36% to over $530 million, a signal often preceding a squeeze or correction.