Ripple, Why there was no price shock when 1 billion XRP were released

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Ripple took an unusual transaction sequence by locking 700 million XRP (Ripple) before its regular escrow release. Although 1 billion XRP were subsequently released as scheduled, the actual increase in circulating supply was limited to 300 million, thus having a limited impact on the price.

According to the cryptocurrency media outlet Finbold on August 3 (local time), Ripple re-locked a total of 700 million XRP in two batches—200 million and 500 million—prior to the regular escrow release on August 1. At the time, their value was approximately $741 million. Unlike the usual practice of releasing 1 billion XRP monthly and then re-depositing some, this time Ripple executed the locking transaction first.

Subsequently, Ripple released a total of 1 billion XRP from escrow, divided into 500 million, 300 million, and 200 million. At the time, their value was approximately $1.08 billion. As a result, with 700 million XRP re-locked, the new supply released into the market was limited to approximately 300 million. This accounts for about 0.48% of the current circulating supply.

In December 2017, Ripple deposited a total of 55 billion XRP into time-based escrow contracts and introduced a system to release 1 billion XRP on the first day of each month. Currently, over 32 billion XRP remain in escrow, and approximately 62.5 billion XRP are in circulation. Since 2026, Ripple has continued the practice of re-locking 700 million XRP out of the monthly released amount and circulating only about 300 million.

This release did not cause any significant shock to the XRP price. The price temporarily dropped to $1.04 on August 1, then recovered to approximately $1.07 by the time of writing on August 3. However, market participants generally view the August outlook as bearish, with a low proportion expecting a clear upward trend. Amid ongoing regulatory uncertainty surrounding the Clarity Act, a U.S. cryptocurrency market structure bill, XRP spot ETFs saw a net inflow of $15 million weekly.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*