XRP News Today: What If Burning Ripple’s Escrow Could Make XRP Soar to $12?

Ripple’s latest escrow activity has drawn renewed attention to the dynamics of XRP supply control, with the company currently holding approximately 35.608 billion XRP in escrow, representing over 35% of the total supply [1]. These tokens are distributed across 14 escrow wallets and are periodically unlocked, typically on the first day of each month, with up to 1 billion XRP released. Any unused portion is generally re-escrowed, maintaining a controlled rate of supply expansion [2].

On September 1, Ripple executed a standard unlocking of approximately 1 billion XRP, valued at $2.76 billion [2]. As is historically common, around 700 million XRP were re-escrowed, resulting in a net addition of approximately 300 million XRP to circulation—equating to around 0.50% of the total supply [2]. This monthly pattern has remained largely consistent since the escrow program was introduced in 2017, ensuring a predictable and gradual release of tokens into the market.

The company's control over such a large portion of the XRP supply has sparked ongoing debates within the community. Some supporters argue that burning the escrowed tokens could artificially create scarcity, potentially driving up the price. However, Ripple’s Chief Technology Officer, David Schwartz, has dismissed the idea, stating that such a move could be a waste of capital, particularly at current price levels [1]. He referenced the 2019 example of Stellar’s (XLM) decision to halve its circulating supply, which failed to produce a meaningful price increase [1].

Using the hypothetical scenario of a complete escrow burn as a basis, an analysis by Google Gemini suggested potential price trajectories for XRP, assuming a bullish market reaction. If the burn triggered a 420% price increase—similar to Shiba Inu’s (SHIB) surge following a large burn—XRP could theoretically reach as high as $12.64, pushing the total market cap beyond $813 billion [1]. However, this scenario was deemed extreme and contingent on highly favorable market conditions. A more realistic estimate placed potential gains in the $6.02 to $9.03 range, assuming a double or triple increase in value [1].

Despite these theoretical projections, it is important to note that such outcomes are speculative and depend entirely on market sentiment and demand. Ripple has shown no indication of burning its escrowed tokens, and the company has historically maintained a strategy of controlled supply management rather than artificial scarcity creation. The ongoing discussions reflect broader debates within the crypto space about the role of token supply, corporate control, and market dynamics.

The recent White House proposal for a strategic digital asset reserve also reignited discussions about potential government interest in Ripple’s holdings, though XRP was not included in the initiative [2]. While the possibility of government acquisition remains speculative, it highlights the increasing intersection of public policy and private token ownership.

Ripple’s escrow activity continues to be closely monitored by investors and analysts alike, as the controlled release of XRP plays a key role in shaping the token’s market behavior and long-term supply trends.

Source: [1] Here's How High XRP Could Reach If Escrow Burn Sparks ... (https://thecryptobasic.com/2025/08/30/heres-how-high-xrp-could-reach-if-escrow-burn-sparks-a-price-rally/) [2] Ripple to unlock 1 billion XRP today — what to expect? (https://finbold.com/ripple-to-unlock-1-billion-xrp-today-what-to-expect/)