Trading Secrets 05-06-2025 14:22 5 Views

Ripple releases $2.18B in XRP, price dips 2%

Ripple has released 1 billion XRP tokens from its escrow accounts this month, marking the continuation of a distribution mechanism that has been in place since 2017.

Although the total value of this latest release exceeds $2.18 billion, only 330 million XRP have entered circulation.

The remainder—670 million tokens—were locked back into escrow in an effort to maintain price stability.

While XRP dropped 2% following the move, data shows the actual market impact may be more muted than the headline figure suggests.

Ripple’s XRP unlock mechanism explained

Ripple follows a structured approach to managing the supply of its native token, XRP.

Each month, the company releases 1 billion tokens from escrow across a series of pre-programmed transactions.

This month’s transactions were recorded by Whale Alert on 1 June 2025 and took place in three batches: 400 million XRP, 500 million XRP, and 100 million XRP were transferred into Ripple-controlled wallets.

This method, while predictable, is closely watched by market participants as it can influence investor sentiment and trading volumes.

Ripple originally locked 55 billion XRP into escrow in 2017 to bring transparency and predictability to XRP’s supply schedule.

The company then began releasing 1 billion tokens every month, with any unused tokens returned to escrow.

This framework is intended to ensure liquidity for Ripple’s operations without overwhelming the market.

Just 330M XRP circulated in June

Despite the release of 1 billion XRP, Ripple returned 670 million tokens to escrow. As a result, only 330 million XRP entered the market this month.

The tokens that remain in circulation are used to fund Ripple’s operations, partnerships, ongoing ecosystem activity, and maintain liquidity for its broader payment infrastructure.

This careful step helps keep prices from getting out of control. Ripple has followed this pattern for years, and it has worked well so far.

XRP price and volume dip post-unlock

Following the 1 June release, XRP’s market price slipped approximately 2% to trade at $2.20.

The cryptocurrency’s total market capitalisation now stands at around $129 billion.

Although the drop was modest, it reflects how sensitive the market remains to changes in token supply, even if a large portion of the released tokens are not immediately sold.

XRP’s 24-hour trading volume also took a hit, falling by 19.5% to hover near $2 billion.

This decline may indicate short-term caution among investors, particularly those monitoring Ripple’s actions closely.

Historically, however, these monthly releases have had limited long-term effect on XRP’s price trend, largely due to Ripple’s consistent practice of re-escrowing unused tokens.

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