Ongoing discussions center around Ripple $2‘s scheduled release of 1 billion XRP coins from escrow each month and its impact on the altcoin‘s price. Contrary to speculations of a market-disrupting sale strategy, crypto analyst Vincent Van Code argues that these actions are rooted in meticulously planned liquidity and operational management. A significant portion of the released XRP is immediately returned to new escrow accounts, with a small percentage earmarked for Ripple’s operational expenses and the On-Demand Liquidity (ODL) platform.
Understanding Ripple’s Monthly XRP Escrow Process
Ripple’s management of XRP through an automated escrow system integrated into the XRP Ledger ensures control and security. Every month, 1 billion XRP are released, but these coins do not directly flood the market. Instead, over 80% are reinvested into time-locked escrow accounts managed by the XRP Ledger’s internal protocol, beyond Ripple’s immediate reach.
According to Van Code, the remaining 10-20% of XRP serves Ripple’s operational expenses, manages liquidity, and supports strategic partnerships. This approach prevents sudden supply shocks and ensures the long-term sustainability of XRP in the market.
The released XRP dedicated to operational use significantly bolsters Ripple’s ODL platform, which enables financial institutions to perform near-instantaneous and cost-effective international money transfers. Institutions convert local currency into XRP, transfer, and reconvert to local currency in the target country, minimizing XRP retention for speculation and diminishing its long-term price impact.
Van Code highlights that Ripple’s XRP sales constitute less than 1% of the total market volume, with XRP’s 24-hour trading volume exceeding $212 billion. Claims that Ripple’s sales could crash the market are overblown, given the greater influence of Bitcoin $104,945 price movements, regulatory news, and institutional actions on market volatility.
XRP’s Market Performance
In 2025, XRP outperformed Bitcoin and Ethereum $2,396 with a 335.1% annual return. January saw a robust 46% rise, followed by a 29.3% dip in February. Moderate movements occurred from March (-2.52%) to June (-2.38% so far).
Despite recent short-term dips of 0.8% over the last week and 6.1% in the past 24 hours, XRP’s potential for long-term growth and expanding real-world applications remain promising.