Ripple is preparing to unlock 1 billion XRP in early November while exploring a new strategy to monetize its 35.9 billion XRP held in escrow. The company’s CTO recently indicated plans to sell rights to future XRP releases, potentially raising funds without immediately increasing market liquidity.
This move follows Ripple’s established escrow schedule, which currently holds 35.9 billion XRP locked, with 60.1 billion XRP in circulation. The full escrowed amount is projected to unlock by 2028 under the current monthly release framework.
Ripple’s Escrow Strategy and Upcoming Unlock
Ripple releases XRP from escrow monthly but only a fraction—typically 200 to 300 million tokens—enters the market, with the remainder re-escrowed. This practice aims to stabilize supply and reduce inflationary pressure.
However, the CTO’s recent post on X (formerly Twitter) suggested a shift: rather than simply locking unused XRP back into escrow, Ripple may sell rights to purchase XRP from future unlocks. This approach would allow Ripple to monetize escrowed tokens without flooding the market immediately.
Current XRP Market Performance and Investor Sentiment
Ripple faces challenges amid a volatile market. XRP started Q4 with a 13% price drop, underperforming many large-cap assets despite broader market weaknesses. Data from Glassnode shows long-term holders (LTHs) increasing XRP spending by 580%, yet the price has declined 27% in response, indicating weak demand.
Spent volume for XRP surged from $38 million to $260 million daily (7-day SMA), signaling that LTHs are selling significant amounts after the token’s 270% rally since Q4 2024.
Implications of Monetizing Escrowed XRP
By pre-selling rights to future XRP releases, Ripple could access capital without immediately expanding circulating supply. This might ease funding needs while maintaining supply discipline.
However, given current market conditions and investor uncertainty, the strategy’s impact on XRP’s price stability remains uncertain. It may represent Ripple’s effort to institutionalize its holdings amid fluctuating demand.
| Metric | Value |
|---|---|
| XRP in Circulation | 60.1 Billion |
| XRP in Escrow | 35.9 Billion |
| Monthly Unlock Amount | 1 Billion |
| Typical Market Release | 200–300 Million |
| XRP Price Drop Q4 Start | 13% |
| LTH Spending Increase | 580% |
| Spent Volume Increase (7-day SMA) | From $38M to $260M daily |
| XRP Price Decline (Recent) | 27% |