XRP News Today: Ripple Accelerates XRP Escrow Release Strategy, Could Deplete 36.4 Billion XRP in Six Years

Ripple, the company behind the cryptocurrency XRP, has accelerated its escrow release strategy, potentially depleting its entire 36.4 billion XRP escrow in just six years. This shift marks a departure from the company's previous approach, which involved routinely relocking large volumes of XRP.

In July, Ripple unlocked 1 billion XRP in two separate phases, releasing 500 million XRP on July 1 and another 500 million on July 4. However, only 700 million of the total unlocked amount was put back into escrow, with the remaining 300 million XRP being put into circulation to promote its On-Demand Liquidity (ODL) services, infrastructure construction, and access to institutions.

This change in strategy has led to speculation that Ripple could drain its escrow faster than initially anticipated. According to a well-known figure in the community, if Ripple continues to release 300 million XRP on a monthly basis, the supply could last another 10 years. However, if Ripple increases its monthly release to 400 million XRP from 2026, the escrow could run dry in just 7.5 years. In a more aggressive model, where monthly releases increase by 100 million XRP annually starting in 2026, the remaining escrow balance could be emptied within six years.

Ripple's decision to split the July unlocks and only relock 700 million XRP indicates a shift towards a more flexible, demand-driven strategy. The company is now matching its unlocks to market demand rather than adhering to a fixed schedule. This elastic model could imply increased monthly circulation in the short run, as Ripple is being more selective in the distribution of XRP with respect to utility and liquidity needs.

Ripple's evolving release strategy has given XRP's market availability new momentum. If current trends continue, the entire escrow could be emptied far sooner than previously expected. This shift in strategy could have significant implications for the XRP market, as the increased circulation of XRP could potentially impact its price and availability.