Ripple Locks $2B in XRP Escrow as Price Dips Below $3
Ripple Labs moved 700 million XRP (about $2.08 billion) into escrow in three transactions (100M, 500M, 100M) on August 2. This follows earlier transfers of 200 M and 300 M XRP from unknown wallets. The monthly XRP escrow mechanism, in place since 2017, typically releases 1 billion tokens on the 1st and re-locks about 80% to prevent oversupply. This month’s operation was delayed by one day.
XRP price fell over 10%, sliding from $3.32 to as low as $2.94 after the US Federal Reserve held interest rates steady, triggering a broader crypto sell-off. The token later recovered to around $2.98. Despite the slump, XRP’s active escrow management underscores supply control. Analysts like Javon Marks predict a rebound to $4.80, while Bloomberg’s Eric Balchunas puts the chance of an XRP ETF approval this fall at 85%.
Bullish
The news of another $2 billion XRP escrow lock highlights Ripple’s ongoing supply control, reducing downward pressure on circulating tokens. Although the Fed’s rate hold triggered a short-term price dip below $3, the swift recovery to near $3 underscores market resilience. Positive analyst forecasts—$4.80 target and 85% ETF approval odds—add bullish sentiment. Overall, controlled escrow releases and strong ETF prospects support a favorable outlook for XRP’s medium-term price trajectory.