XRP News Today: What If Burning Ripple’s Escrowed XRP Actually Crushed Its Value?

Ripple’s latest XRP escrow activity has drawn renewed attention from the cryptocurrency market, as the company continues to hold a substantial portion of the token supply in controlled accounts. According to XRPScan, Ripple maintains approximately 35.6 billion XRP in escrow wallets, representing roughly 35.6% of the total 99.985 billion XRP supply. These accounts, established as part of a 2017 escrow program, are designed to release up to 1 billion XRP monthly, with unused tokens typically being re-escrowed to prevent market volatility [2].

On September 1, 2025, Ripple executed its monthly XRP unlock, releasing approximately 1 billion tokens into circulation. Historical patterns suggest that only about 300 million tokens are typically net added to the circulating supply each month, as a significant portion is re-escrowed. This month’s release totaled around $2.76 billion in value, representing 1.68% of the total XRP supply. Whale Alert flagged three separate releases in late August—500 million, 100 million, and 400 million XRP—which marked a rare deviation from Ripple’s standard monthly unlock [2].

The ongoing discussion around the XRP escrow has sparked speculation about potential burns of the locked tokens. Proponents within the XRP community argue that such a move could create artificial scarcity and drive the token’s price higher. This theory is based on supply-demand dynamics, where reducing the total supply while maintaining or increasing demand often leads to price appreciation. Some analysts have drawn parallels to the 2019 Stellar (XLM) burn, which failed to significantly impact the token’s price, raising questions about the efficacy of similar actions in the XRP context [1].

Using hypothetical modeling, a complete XRP escrow burn would reduce the total supply from 99.985 billion to the currently circulating 64.362 billion tokens. If the market responded favorably, such an event could theoretically push XRP’s price to as high as $12.64, representing a 420% increase from the current $2.82 level. However, this scenario assumes a highly bullish market with sustained investor interest, and is considered an upper bound. A more realistic outcome, according to the analysis, would place XRP’s price between $6.02 and $9.03, assuming a doubling or tripling in value post-burn [1].

Despite such speculative models, Ripple’s Chief Technology Officer, David Schwartz, has publicly dismissed the idea that an escrow burn would guarantee a price rally. He has argued that at current valuations, a burn would effectively amount to a $107 billion loss and that market reactions are not guaranteed. These comments underscore the company’s cautious approach to managing its token supply, prioritizing financial prudence over speculative strategies [1].

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/)