Key Takeaways
What’s Ripple’s next move with its massive XRP escrow?
Ripple may start monetizing its escrowed XRP supply by selling rights to future tokens. In short, raising funds without adding supply pressure.
How are investors reacting to XRP’s price trend?
Despite a 580% spike in long-term holder spending, XRP has dropped 27%, signaling weak bid support and fading investor confidence.
No doubt, Ripple’s [XRP] escrow strategy has made its supply more predictable. Naturally, this helps manage market flow, but more importantly, it keeps stakeholders from being caught off guard.
On paper, this sounds like a smart way to avoid inflation.
However, it also raises a key question. Is Ripple managing inflation, or does this approach show a “lack of confidence” in natural market demand? According to AMBCrypto, how this plays out could shape XRP’s next move.
CTO hints at monetizing XRP escrow before next unlock
Ripple is set to unlock another 1 billion XRP as November begins.
At present, 60.1 billion XRP are in active circulation, while 35.9 billion remain locked in escrow. Technically, if Ripple maintained its monthly schedule, the remaining supply would be fully unlocked by 2028.
However, that’s where things get interesting. Typically, only 200–300 million XRP from each unlock reaches the market, while the rest is “re-escrowed.”
Given this setup, Ripple’s CTO recently made a key announcement.
Source: X
In a post on X, he suggested monetizing Ripple’s escrowed holdings.
So far, unused tokens were locked back up, meaning Ripple couldn’t pre-sell them. But by “selling the rights” to buy XRP from future releases, Ripple could raise funds without adding liquidity to the market right away.
Simply put, the 35.9 billion XRP could be pre-sold to investors. However, the tokens would remain off-market until their release dates to control supply. Could this, then, mark Ripple’s next big step toward institutionalization?
Restoring investor confidence is Ripple’s toughest test yet
Ripple is pushing to secure its future, but its present looks fragile.
On the charts, XRP kicked off Q4 with a 13% drop, ranking among the worst-performing large-cap assets. Sure, the broader market slump offers some cover. However, Ripple’s underperformance still stands out.
Backing this, Glassnode data paints a bearish undertone. LTHs (those who accumulated before the election) have boosted their XRP spending by 580%. Yet, despite this, XRP has declined 27%, highlighting a thin bid wall.
Source: Glassnode
In short, investor confidence in Ripple appears unstable.
The chart shows Spent Volume spiking from $38 million to $260 million per day (7-day SMA). This sharp increase suggests that long-term holders are cashing out on massive gains after XRP’s 270%+ rally since Q4 2024.
Against this backdrop, Ripple’s escrow strategy appears more like a hedge against weak market demand. So, while monetizing the supply could mark a bold strategic move, its impact on price stability may remain muted.
