- Ripple’s reported $8B XRP sales in 2025 sparked dumping fears, but the figure reflects cumulative, scheduled escrow releases.
- Escrow mechanics explain the number: about 300M XRP enters circulation monthly, totaling ~3.6B XRP yearly.
- Sales funded growth, not liquidation, as XRP balances on exchanges hit multi-year lows.
Market attention around XRP intensified after a video shared on X by analyst Crypto X AiMan raised alarms across the community. The video centered on a memo reportedly referenced from Ripple’s 2025 annual report and warned holders about XRP selling activity.
In the memo, Ripple highlighted that it sold more than $8 billion worth of XRP in 2025, a message that quickly spread and was widely interpreted as evidence of heavy market dumping. According to Ripple, 2026 would see more XRP sales to expand its core business, including purchasing profitable companies and advancing the RLUSD stablecoin.
Crypto X AiMan framed the disclosure as a cautionary signal for investors, warning them to prepare, as this could mean more selling pressure on the coin as the year unfolds. Still, the analyst urged calm, stressing that the amount of XRP on exchanges continues to decline even as more tokens are released into the market, eliminating speculations of supply flooding the market.
Meanwhile, it is important to fully understand the mechanics behind how this $8 billion value was reached to fully assess the claim accurately.
Also Read: Bitcoin Cash on Fire: Golden Cross Signals Explosive Surge Toward $600!
How escrow releases explain the $8 billion figure
Ripple controls XRP circulation through a structured escrow mechanism, with roughly 55 billion XRP placed into time-locked escrow from its maximum supply of 100 billion tokens created at launch. Every month, 1 billion XRP unlocks automatically, while Ripple historically relocks about 700 million XRP from that release.
This process leaves roughly 300 million XRP available outside escrow each month, which over a 12-month period equals approximately 3.6 billion XRP released into circulation. When multiplied by an average XRP price near $2, the total value reaches about $7.2 billion, explaining how the widely cited $8 billion figure emerged over the year.
Crucially, this distribution unfolded gradually rather than through a single event, as the value reflects cumulative activity tied to scheduled releases.
What the XRP sales are used for
Crypto X AiMan stressed that Ripple openly acknowledged using XRP sales to fund business growth through disclosures in its annual reporting and related memos. He emphasized that the sales supported acquisitions and infrastructure development, positioning XRP as a funding tool rather than a speculative asset.
He also addressed assumptions about exchange dumping, noting that the XRP escrow releases are channelled toward liquidity support services, partnerships, and institutional demand. During the period, XRP balances on exchanges continued declining, reaching an 8-year-low of 1.5 billion XRP, suggesting demand absorbed supply without creating prolonged price pressure.
Meanwhile, Ripple has also previously stated its intention to retain about 25% of the total XRP supply, equal to roughly 25 billion XRP, for long term alignment. Maintaining a large XRP position signals confidence in the asset’s future role, as a complete sell-off would weaken trust in the network.
Overall, Crypto X AiMan warned that XRP could experience a lot of volatility moving forward, stemming from the heightening demand-supply dynamics. However, he reiterated that the value of XRP will continue to surge as demand increases, noting that the XRP distribution reflects a transparent process managed by Ripple Labs, not uncontrolled dumping.
Also Read: XRP Is Repeating This Bullish Pattern – Here’s What Could Happen Next?
