Important points
What will be Ripple’s next move with its massive XRP escrow?
Ripple could start monetizing its escrowed XRP supply by selling rights to future tokens. That is, raising funds without adding supply pressure.
How are investors reacting to XRP price movements?
Despite a 580% jump in spending by long-term holders, XRP fell 27%, indicating weak bid support and declining investor confidence.
Definitely Ripple [XRP] Escrow strategies have made that supply more predictable. Naturally, this helps manage market flows, but more importantly, it prevents stakeholders from being caught by surprise.
In theory, this seems like a smart way to avoid inflation.
However, important questions also arise. Is Ripple managing inflation, or does this approach demonstrate a “lack of confidence” in the market’s natural demand? How this plays out could determine XRP’s next move, according to AMBCrypto.
CTO hints to monetize XRP escrow before next unlock
Ripple plans to unlock an additional 1 billion XRP as November begins.
Currently, 60.1 billion XRP is in active circulation, while 35.9 billion remains locked in escrow. Technically, if Ripple maintains its monthly schedule, the remaining supply would be fully released by 2028.
However, here’s where things get interesting. Typically, only 200-300 million XRP from each unlock reaches the market, and the rest is “re-escrowed.”
With this setup in mind, Ripple’s CTO recently made an important announcement.
Source:X
In a post about X, he proposed monetizing Ripple’s escrow holdings.
So far, unused tokens have been locked again and Ripple has been unable to pre-sell the tokens. However, by “selling the right” to buy XRP from future releases, Ripple could soon raise funds without adding liquidity to the market.
Simply put, 35.9 billion XRP could be pre-sold to investors. However, in order to control supply, the tokens will remain off the market until the release date. So is this the next big step towards organizing Ripple?
Restoring investor confidence is Ripple’s toughest test yet
Ripple is trying to secure its future, but it looks vulnerable right now.
On the charts, XRP started the fourth quarter down 13%, ranking as one of the worst performing large-cap assets. Certainly, the overall market downturn provides some compensation. However, Ripple’s poor performance still stands out.
In support of this, Glassnode data paints a bearish tone. LTH (those accumulated before the election) increased XRP spending by 580%. Nevertheless, XRP fell 27%, highlighting the thin bidding wall.
Source: Glassnode
In other words, investor confidence in Ripple appears to be unstable.
This chart shows usage jumping from $38 million to $260 million per day (7-day SMA). This sharp increase suggests that long-term holders are cashing in huge profits following XRP’s over 270% rally since Q4 2024.
Against this background, Ripple’s escrow strategy looks like a hedge against weak market demand. Therefore, while supply monetization may be a bold strategic move, the impact on price stability may still be small.