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Ripple is set to unlock 1 billion $XRP from escrow on September 1 as part of its long-running monthly release program, placing over $1 billion worth of tokens back under the company’s control.
The scheduled release comes as $XRP continues to trade above the psychologically important $1 level, consolidating after its recent rally in line with broader cryptocurrency market sentiment.
The escrow mechanism was introduced in 2017 when Ripple locked 55 billion $XRP into a series of time-locked contracts designed to provide transparency around token supply.
Under the arrangement, up to 1 billion $XRP becomes available on the first day of every month, although Ripple typically returns a significant portion of the unlocked tokens to escrow.
Historical data shows that Ripple generally re-locks between 600 million and 800 million $XRP, resulting in a net addition of roughly 200 million to 400 million $XRP to circulating supply.
Analysts note that Ripple has maintained this pattern across multiple market cycles, limiting the amount of new $XRP entering circulation.
During August’s release, the company returned 700 million $XRP to escrow, leaving a net increase of about 300 million tokens. $XRP subsequently traded in line with broader crypto market trends rather than experiencing a prolonged selloff.
Impact on $XRP price
Still, investors closely watch the monthly escrow events due to their scale. At current prices, September’s 1 billion $XRP unlock is worth about $1.3 billion, making it one of the largest recurring token releases in the crypto market.
Historical data suggests $XRP’s monthly escrow releases have had a limited impact on price, as the schedule is known in advance and most unlocked tokens are typically returned to escrow.
While the events can trigger short-term volatility, they have not consistently led to sustained declines in $XRP.
The September unlock will also further reduce Ripple’s escrow holdings, which have fallen from 55 billion $XRP in 2017 to roughly 38 billion $XRP. As reserves continue to decline, investors are watching how Ripple manages future distributions and whether growing institutional demand can absorb the additional supply.
$XRP price analysis
Despite the correction, $XRP remains in a bullish trend, trading above both its 50-day SMA of $1.14 and 200-day SMA of $1.28, indicating buyers remain in control across the medium and long term.
Meanwhile, the 14-day RSI of 60.45 remains in neutral territory, signaling positive momentum without the token being overbought.
Source: cryptonews.net