Ripple Alters XRP Escrow Strategy, Releases $2.2B in XRP to Circulating Supply Amid ETF Speculation
Ripple Labs has shifted from its predictable monthly schedule by releasing $2.2 billion worth of XRP (1 billion tokens) from escrow in June 2024. After re-locking 670 million XRP, the net increase to the circulating supply stands at 330 million XRP, bringing the total circulating XRP to approximately 58.76 billion. This adjustment to Ripple’s escrow strategy, first observed in March 2024, indicates a move toward more conservative liquidity management and market stability in the face of regulatory uncertainties. The June release was carried out in three major transactions tracked by Whale Alert, while a coinciding large transfer on Coinbase was identified as an internal movement with no direct market impact. These changes also arrive as market optimism grows surrounding the potential approval of an XRP spot ETF, with current estimates suggesting a 98% chance by the year’s end. The SEC has postponed decisions on spot XRP ETFs, seeking public input. Notably, Ripple has stopped issuing monthly XRP reports, preferring less frequent updates. Traders should closely monitor Ripple’s evolving escrow approach and accompanying regulatory developments, as changes in circulating supply and ETF approvals could drive short-term volatility and influence longer-term price trends for XRP.
Neutral
Ripple’s irregular escrow releases since March 2024, culminating in a $2.2 billion XRP release with a 330 million net supply increase in June, signal a conservative shift in liquidity management. Reduced transparency and altered release patterns could curb immediate selling pressure, helping short-term price stability for XRP. Meanwhile, speculation about SEC approval of an XRP ETF (with a high estimated probability) increases market optimism, though regulatory outcomes remain pending. The net effect is mixed: while limited new supply and strategic management may support stability, changes in transparency and regulatory delays could create uncertainty. Overall, the short-term impact is likely neutral, with volatility hinging on further regulatory developments.