With the end of Ripple's escrow program, the crypto community is discussing how this event will affect XRP distribution and liquidity. The article presents analytical forecasts and possible scenarios.
Current State of Ripple's Escrow Program
Ripple's escrow program, containing 36.4 billion XRP, is nearing its end. Community analysis indicates the potential for full release of tokens within the next six years.
Potential Changes in Ripple's Strategy
According to data from XRPwallets, if Ripple continues to release 300 million XRP each month, the entire supply will be depleted in 10 years. However, if the monthly release is increased to 400 million XRP starting in 2026, this period could be reduced to 7.5 years. An even more aggressive approach of increasing the release amount by 100 million XRP each year could deplete the supply in just six years.
Impact on XRP Market and Liquidity
Signals of this change are already observable in the market. Ripple released a total of 1 billion XRP from its escrow account at the beginning and end of the month. 700 million XRP was re-locked, while 300 million was allocated for liquidity services, exchange-traded products, and infrastructure projects. XRPwallets notes that Ripple adjusts the circulating supply based on market demand, suggesting a more flexible strategy may be adopted.
The influence of Ripple's final release strategy on the market and liquidity is significant. The methods by which Ripple distributes tokens and whether it continues its previous strategy can play a crucial role in XRP market dynamics.
