Ripple’s escrow mechanism is approaching a critical phase, with only 36.537 billion XRP remaining locked as of May 2025. This marks a significant drop from the original 55 billion, underscoring Ripple’s consistent strategy of gradual releases and re-locking of unused tokens.
According to updates from XRP Investing, a well-followed XRP-focused account on X (formerly Twitter), concerns over Ripple dumping XRP into the market are misplaced. The expert noted that only some of the monthly released 1 billion XRP are put into use.
Funds not used during the period are sent back to escrow, allowing for a fairer balance in the market. All transactions with escrow leave a record on the blockchain, making them accessible and open to all.
This prevents a sudden change in the number of tokens and ensures careful supply control. Even though it holds over 46 percent of the XRP, Ripple can’t sell many without being watched closely.
Also Read: Today is a Huge Day For XRP – Analyst Explains What’s Coming
⚠️🚨THINK XRP’S ESCROW IS BAD FOR PRICE?
You’ve been misled.
It’s not dumping XRP…
It’s starving the market.
And the moment it ends could be explosive. 🧵👇🏻 pic.twitter.com/L0ZXVxiqnI
— All Things XRP (@XRP_investing) May 17, 2025
Tightening Supply Could Lead to Significant Shifts in XRP Dynamics
According to the thread, the escrow plays a supportive role in maintaining the asset without restricting its growth. The XRP coin is becoming increasingly popular as adoption via On-Demand Liquidity grows and exchange-traded products are waiting to be introduced.
If users use the coins more than the daily supply placed on the market, it could cause a supply shortage.
Once the amount in escrow finishes, the supply of XRP will be fixed, and at that point, the price will rise and fall based on demand and trading activity rather than any increase in supply. This case could set the stage for a significant change in XRP’s market pattern.
Ripple’s methodical release model has supported controlled growth, transparency, and investor confidence, which the expert summarized as “It’s not dumping — it’s discipline.”
Since the total amount of XRP is strictly managed and demand is rising, how much is in escrow could be a key factor in its valuation over time. Ripple relies on the set approach for asset management, as explained by XRP investing, in the long run.
