Ripple (XRP) Price Falls: 1B XRP Released – What Happens Next to Investors?

Table Of Contents

Ripple Unlocks 1 Billion XRP: Price Falls as the Market Fears the Uncertainty
XRP Price Falls as Unlock Event Concludes
Trading Volume Surges Despite Decline
The Impact of Ripple's Escrow System on XRP Supply
XRP Market Outlook: Will the Price Recover?
What's in Store for XRP?
Final Thoughts: Should You Buy the Dip?

Ripple Unlocks 1 Billion XRP: Price Falls as the Market Fears the Uncertainty

Ripple has released another 1 billion XRP from its escrow as part of its scheduled monthly distribution. The latest release, valued at around $3.10 billion, was drawn from escrow accounts labeled ‘Ripple (26)’ and ‘Ripple (27)’, with 400 million XRP unlocked from the former and 500 million XRP from the latter.

However, only 20-25% of the released tokens will be sold or used through strategic partnerships, and the rest will be relocked. This controlled supply mechanism aims to prevent market flooding and maintain stable XRP liquidity over time.

XRP Price Falls as Unlock Event Concludes

The latest XRP unlock event triggered a sharp 17.79% price decline within 24 hours, reflecting a strong market reaction. After peaking in January, XRP’s price fell to $1.9493 before slightly recovering to $2.37. Following this drop, XRP’s market cap shrank by 17.71% to $136.92 billion.

Trading Volume Surges Despite Decline

At $32.83 billion, despite the drop, trading volume grew 392.21%, demonstrating significant market involvement. The markets closely watch how investors and traders make moves during the ongoing market volatility as a way to make some investments.

The Impact of Ripple’s Escrow System on XRP Supply

Ripple introduced its escrow system in 2017 to control the release of XRP and maintain market stability. The company initially held 80 billion XRP in escrow, releasing 1 billion XRP monthly while re-locking any unsold tokens.

For instance, in January, Ripple allocated 300 million XRP for sales and institutional use, while the remaining supply was locked back into escrow. This strategy aims to balance XRP supply and demand, preventing extreme price fluctuations.

XRP Market Outlook: Will the Price Recover?

At the beginning of 2025, XRP was trading at $2.08. Then, in mid-January, it shot up to $3.39, showing a rise of 45%. But with price corrections, market sentiment, and token unlock events, there have been ups and downs.

The current crypto market crash has put more pressure on XRP. Many investors are not taking risks in short-term movements. However, analysts believe that the structured token release strategy of Ripple will help maintain long-term stability for XRP.

Key XRP Market Stats:

Total Market Value: $237.38 billion
Circulating Supply: 57.7 billion XRP

What’s in Store for XRP?

It largely depends on when Ripple unlocks its escrows, broader crypto trends, and investor sentiment. To some, the recent dip marks an excellent time to buy. Others, however, see this as a caution sign while volatility remains.

Final Thoughts: Should You Buy the Dip?

One of the well-known schedules of the XRP ecosystem is the token releases of Ripple. These sometimes cause short-term price dips but, depending on how the market absorbs the newly released supply, may have long-term implications. If history repeats itself, then XRP will rebound once the selling pressure subsides.