Ripple has quietly locked 700 million XRP back into escrow, sparking renewed speculation across the XRP community. The move was flagged by blockchain tracker Whale Alert, which reported the re-escrowing just days after Ripple’s scheduled monthly token unlock.
Each month, Ripple releases one billion XRP from escrow as part of its long-running supply strategy. The funds are generally used for institutional sales, business operations, and other corporate needs.
However, Ripple does not always utilize the entire unlocked amount. A large portion is frequently returned to escrow, maintaining a predictable circulation of tokens.
What caught analysts’ attention this time is that the re-escrowed XRP did not stem from the usual monthly release. Instead, the company used surplus tokens held in its internal accounts to create new escrows.
Experts Weigh In as Ripple Alters Token Flow from Internal Reserves
According to Cyprus-based XRP researcher Leonidas Hadjiloizou, the 700 million XRP were sourced from Ripple’s own holdings rather than from the typical monthly escrow cycle. He clarified that Ripple maintains several billion XRP outside of escrow, giving the company flexibility in how it manages distribution.
The significant XRP escrow return raises strategic questions for Ripple since the company continues to possess a notable XRP quantity. Ripple maintains the control of nearly 40 percent of all existing XRP tokens thereby drawing close market attention to its token transfers.
Ripple CEO Brad Garlinghouse announced that his company may reduce the volume of XRP sales according to recent statements. The market valuation of XRP would likely experience less downward pressure when the XRP escrow releases are done in line with lower demand levels.
The current escrow transactions have failed to affect XRP’s market price stability. XRP shows no significant market volatility according to CoinGecko since its price decreased by 0.2 percent within the past 24 hours.
Supply-related events on XRP result in minimal market reaction which persists as a standard pattern. The market has absorbed Ripple’s continued practice of escrow as an intrinsic operational component of their business activities.
Ripple removed its cross-appeal from its ongoing high-profile battle with the U.S. Securities and Exchange Commission recently. Ripple gained this advantage after the SEC agreed to ask the court to remove limitations on institutional XRP sales through the injunction.
The injunction was originally part of Judge Analisa Torres’s final ruling last August. Its potential removal adds a new dimension to Ripple’s legal and regulatory outlook.
Conclusion
Ripple’s unexpected decision to re-escrow 700 million XRP from internal reserves has left the market speculating about the company’s next move. With price stability intact and regulatory tensions easing, attention now turns to how Ripple will navigate its future token strategy.
Also Read: Grayscale Seeks SEC Approval to Launch Crypto ETF Including XRP
