Ripple, the firm responsible for the development of the XRP Ledger, is scheduled to release 1 billion tokens on June 1, valued at $520 million. This process is part of Ripple's monthly token sales strategy, which has the potential to have adverse effects on the XRP price in the upcoming weeks.

In the past, Ripple has unlocked 1 billion tokens on the first day of each month since 2017 utilizing escrow mechanisms. Up until April, the company managed the escrows through accounts named 'Ripple (22)' and 'Ripple (23)' as per XRPScan records.

However, these accounts no longer have active unlocking contracts, and as reported by Finbold, May saw the utilization of two new addresses: 'Ripple (24)' and 'Ripple (25)' now hold the 1 billion XRP monthly unlock escrows until January 2025.

The recent XRP token unlock in May involved the release of 1 billion XRP from 'Ripple (24)' and 'Ripple (25)' accounts. Following this, Ripple reserved 200 million tokens for sale and re-locked the remaining tokens in escrows until September 2027.

On May 13, 'Ripple (24)' transferred 200 million XRP to 'Ripple (1)' treasury account. The company subsequently sold 150 million XRP on the same day, constituting 75% of the reserved amount. The final 50 million XRP were sold on May 24, concluding the month's sell-off activities.

The impact of Ripple's token sales on XRP price dynamics cannot be overstated. These sales exert pressure on the supply side of the market, often resulting in price fluctuations. Historically, the days when Ripple sold its tokens saw XRP experience local crashes, with only a few days displaying positive price movements in 2024. Monitoring Ripple's activities is crucial given the influence they have on XRP's price trajectories.

In 2024, XRP had negative monthly performances for three out of the first five months. May, despite the significant token unlock, exhibited a neutral price trend from the beginning of the month. At the time of this writing, XRP was trading at $0.52 per token.

Disclaimer: The information provided here should not be construed as financial advice. Investing in cryptocurrencies carries inherent risks.