The escrow system used by Ripple has long been a source of controversy within and outside the XRP community. Critics, including Bitcoin advocates and some XRP holders, often claim that the monthly release of XRP from escrow creates downward pressure on the asset’s price. However, a well-known analyst within the XRP community has provided a contrasting perspective, asserting that the escrow does not harm the price. He claims it restricts market supply and could contribute to a future price surge. A Misunderstood Mechanism The analyst, who operates the “All Things XRP” account, argues that many people misinterpret the nature and impact of Ripple’s escrow system. According to the pseudonymous analyst, “It’s starving the market,” not flooding it. He explains that while XRP has a total fixed supply of 100 billion tokens, over 56 billion have already entered circulation. The remaining tokens are being gradually released from escrow, a system Ripple implemented in 2017 to address trust and transparency concerns. At the time, Ripple placed 55 billion XRP into escrow and set up a schedule to release 1 billion tokens per month. While this schedule might seem like a steady injection of new supply, the analyst clarified that Ripple does not typically use the full monthly allocation. In most months, a large portion of the released XRP is returned to escrow, effectively deferring its entry into the market. He stated that Ripple typically uses between 200 and 300 million XRP monthly for purposes such as market making, running its payment infrastructure, and supporting ecosystem initiatives. THINK XRP’S ESCROW IS BAD FOR PRICE? You’ve been misled. It’s not dumping XRP… It’s starving the market. And the moment it ends could be explosive. pic.twitter.com/L0ZXVxiqnI — All Things XRP (@XRP_investing) May 17, 2025 Supply Control, Not Dumping This approach, the analyst argues, demonstrates supply control rather than market manipulation. He emphasized that Ripple’s behavior has been consistent and disciplined, with unused tokens routinely locked back into escrow. This process, he said, should not be equated with token dumping, which implies reckless or excessive release of assets into the market. Currently, Ripple holds approximately 36.5 billion XRP in escrow, down from the initial 55 billion, reflecting how the system has gradually reduced over time. The analyst believes this declining escrow balance, combined with increasing demand, particularly from On-Demand Liquidity (ODL) services and the potential for XRP-related exchange-traded funds (ETFs), could lead to a scenario where demand surpasses available supply. In his view, this “starving” effect could ultimately fuel a significant price appreciation. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Centralization Concerns and Transparency The analyst also responded to concerns about centralization, a point frequently raised by Bitcoin maximalists and skeptics of Ripple’s influence over XRP. While Ripple still owns a significant portion of the total supply, estimated at around 46%, he contends that the escrow system introduces accountability. Because every token release is publicly recorded on-chain, the process remains transparent and traceable. This structure, he argues, limits Ripple’s ability to manipulate the market and reinforces long-term trust in the system. Suggestions from the Community Some members of the XRP community have proposed alternative ways of handling the escrowed tokens. Ideas have included unlocking additional tokens to support ecosystem initiatives or even burning the remaining supply entirely to create artificial scarcity. However, Ripple Chief Technology Officer David Schwartz has dismissed such proposals. He referenced the 2019 decision by the Stellar Development Foundation to burn 55 billion XLM tokens. “Stellar burned half their supply and there wasn’t so much as a blip on their price chart,” he said, suggesting a similar strategy for XRP would not yield the desired effect and would instead squander valuable assets. The analyst behind “All Things XRP” argues that Ripple’s escrow structure acts as a supply management tool, not a price suppressor. He believes that as long as Ripple maintains its current release practices and market demand continues to grow, the conditions for a substantial price movement will only strengthen as the remaining escrow balance declines. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Expert Explains Why Ripple Escrow Could Aid XRP Price Rally appeared first on Times Tabloid .
