$17.9 Billion in XRP Tokens Set to be Unlocked in 2023

$17.9 Billion in XRP Tokens Set to be Unlocked in 2023

Altcoins

The 2022 annual report of Token Unlocks highlights XRP as the token with the highest unlock potential for 2023. With $17.9 billion in tokens set to enter the market, XRP will unlock over four times more tokens than the next-ranked token, Filecoin.

Filecoin expects to unlock $4.9 billion in tokens this year, adding to several other planned unlocks, as reported by the Chinese crypto journalist Collin Wu. Wu’s report has generated reactions among his Twitter followers as users questioned what the influx of tokens could do to the market.

Among the tokens mentioned in the report are Optimism $3.7 billion, Chainlink $2.9 billion, BitDAO $2.5 billion, ApeCoin $2.3 billion. Others include STEPN $1.4 billion, Hedera $1 billion, Axie Infinity $1 billion, dYdX $0.9 billion, and many more.

Token unlock, otherwise known as vesting schedule, is a predetermined and fundamental aspect of the tokenomics of every blockchain project. It is similar to releasing shares through Initial Public Offerings (IPOs), or lockup periods in the stock market.

During token unlocks, a project releases previously locked tokens into the market over a predetermined period. The purpose is to align the incentives between the project creators, investors, and users.

Reactions following Wu’s report came mainly from users who suspect that the impending influx of new tokens could generate a FUD in the market. Some have questioned the authenticity, comparing it with their knowledge about some of the projects.

1 billion XRP is “unlocked”every month not sure where they are getting those 17 billion from probably FUD as always 🤷🏾‍♂️

— Th〰️ (@ethanjames0394) January 19, 2023

The cumulative estimated value of the tokens expected to be introduced through the token unlock process is $102 billion. This is a volume that could have a significant impact on the market.

Increased supply as we know it generates a corresponding drop in market value if basic economics apply. However, users’ concern is the sentimental influence that this might have on the already fragile crypto market.

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