Ripple continues to shift its strategy for managing XRP, 36 billion of which remain locked in escrow. This article examines how changes in release strategy may impact the cryptocurrency market.
History of XRP and Escrow
In 2017, Ripple CEO Brad Garlinghouse announced the locking of 55 billion XRP in escrow contracts. According to him, this was 'good for supply predictability', which was intended to build trust in XRP's long-term market behavior.
Current Release Trends
According to data from XRPwallets, nearly 36 billion XRP remain locked, valued at approximately $131 billion today. If Ripple continues releasing 300 million XRP per month, escrows would run out by 2035. However, an increase to 400 million by 2026 could shorten this timeline to 2032. This month, Ripple split its release into two tranches: 500 million XRP on July 1 and another 500 million on July 4.
Future of XRP and Demand
Ripple seems to have shifted away from its usual unlock-and-relock routine. This month, 700 million of the 1 billion XRP released were relocked, while 300 million hit circulation for use cases such as on-demand liquidity and potentially exchange-traded products. The new approach may indicate a faster path to full market supply for XRP.
Ripple's changes in its XRP release strategy could significantly impact the market and the consumption of the cryptocurrency in the future. Attention to real demand may lead to quicker availability of XRP for users.
