Ripple unlocks 500 million XRP and quickly sends 400 million back to escrow, raising questions about its strategy and market impact.
Blockchain payments giant Ripple has executed its scheduled July escrow activity, unlocking 500 million XRP from its reserve accounts. The release, worth approximately $1.08 billion at current prices, was conducted in two tranches, 200 million and 300 million XRP, according to on-chain tracker Whale Alert.
This release falls short of the typical 1 billion XRP monthly unlocks that Ripple has conducted consistently since 2017, suggesting a shift in its release cadence or token allocation strategy.
Ripple Moves 400M XRP Back to Escrow
Shortly after the unlock, Ripple re-locked 400 million XRP (valued at approximately $869 million) back into escrow, a move that drew the attention of analysts and the cryptocurrency community. The tokens were funneled through two separate wallets, each transferring 200 million XRP to Ripple’s designated re-escrow address.
This tactic reflects Ripple’s recent trend of internal token redistributions and reserve restructuring, which has been observed in previous months as part of its broader treasury management strategy.
Earlier in the year, Ripple began deviating from its traditional 1 billion XRP monthly unlocks, occasionally opting for partial releases and immediate re-locking. In March, for instance, the company created new escrows using internally held XRP, an action that analysts interpreted as a strategic adaptation in response to market dynamics and institutional demand.
This latest 500 million XRP release, followed by a swift 400 million re-lock, appears to reinforce Ripple’s intent to maintain control over the circulating supply, likely to manage inflation concerns and liquidity provisioning through on-demand liquidity (ODL) services or institutional partnerships.
XRP Price Volatile Despite Escrow Activity
Following the escrow activity, XRP briefly dipped to a low of $2.15 before rebounding to $2.19, mirroring broader market fluctuations. Despite the modest uptick, the token remains down 0.6% over the last 24 hours, underperforming relative to Bitcoin’s recent stability.
Some analysts remain optimistic, citing XRP’s earlier surge to $2.32 and potential technical setups indicating a move toward $6.50 or even $8 later this month.
Ripple’s latest escrow cycle underscores a deliberate and evolving approach to XRP supply management. While the company continues to fulfill its commitment to transparency, the shift toward partial unlocks and immediate re-locking may be part of a long-term plan to stabilize market dynamics while accommodating growing institutional and cross-border demand.
Whether this pattern continues or shifts further remains to be seen, but Ripple’s handling of its XRP holdings continues to have far-reaching implications for investor sentiment and price movement.
