Ripple Releases 1 Billion XRP from Escrow; 700M Relocked Within 24 Hours
Ripple released 1,000,000,000 XRP from escrow on January 1, 2026, in three transactions: 300M and 200M to the Ripple (28) wallet and 500M to the Ripple (9) wallet. The total on-paper circulating supply rose by about $1.84 billion in value at time of release (roughly $552M + $368M + $920M). XRP had closed December 2025 down 14.8%, the first December monthly red close since 2022, raising concerns about short-term sell pressure. On-chain data shows Ripple’s historical pattern held: within 24 hours, about 700M XRP was placed back into escrow (500M + 100M + 100M across Ripple (15) and Ripple (14) escrows). This relocking reduces immediate supply impact and suggests controlled liquidity management rather than a large-scale dump. Key takeaways for traders: monitor exchange inflows of the remaining unlocked balance, watch short-term liquidity and order book depth, and track price reaction — relocking often mutes prolonged downward pressure but exchange-directed transfers can trigger volatility. Primary keywords: XRP, Ripple, escrow release. Secondary keywords: relocking, circulating supply, on-chain data, sell pressure.
Neutral
The net market impact is neutral given the rapid relocking of 700M XRP (70% of the 1B release) within 24 hours. Historically, Ripple typically relocks 70–80% of monthly releases, which softens supply shocks and reduces lasting downward pressure. In the short term, headlines of a 1B escrow release can increase volatility and cause bearish sentiment—especially after a negative monthly close—if a meaningful portion flows to exchanges. However, the observed escrow-creation transactions indicate Ripple moved most unlocked tokens back out of immediate circulation, lowering immediate sell pressure. Therefore traders should expect short-lived volatility tied to exchange inflows and order-book depth, but not a guaranteed prolonged bearish trend unless more unlocked XRP is transferred to exchanges and executed as market sells. Long-term effects are limited by Ripple’s recurrent relocking practice; recurring releases still add periodic liquidity events that can influence price temporarily, but sustained market impact depends on exchange conversion and broader demand dynamics (ETF flows, macrocrypto sentiment). Similar past events (previous monthly escrow releases followed by large relocks) tended to produce brief price dips or muted reactions rather than extended collapses.