XRP News Today: Ripple's Monthly XRP Releases Not Driving Price Down, Expert Says

Ripple's monthly release of 1 billion XRP from escrow has sparked debate about its impact on the token's price, with some speculating that the company is "dumping" tokens to suppress XRP’s value. However, blockchain expert and software engineer Vincent Van Code has challenged this narrative, asserting that it is both misleading and factually incorrect.

Van Code's analysis, shared on X, delves into the mechanics of Ripple’s escrow system, which was introduced to bring predictability and transparency to the token’s supply. Since 2017, 55 billion XRP have been placed in monthly escrows, with 1 billion scheduled for release each month. These releases are automatic and verifiable on the blockchain, eliminating any uncertainty about how and when XRP enters the market.

Contrary to popular belief, the monthly release of XRP does not equate to a sale. Ripple typically places 80–90% of the monthly unlocked XRP back into new escrows. Only a small fraction of the released tokens are used, and these are employed for specific, utility-driven purposes. This practice ensures that the tokens are put to work—transferred, recycled, and returned to circulation—not held or sold for profit.

Ripple has halted programmatic sales since 2020, addressing community concerns. Today, the company’s XRP sales are directly tied to its On-Demand Liquidity (ODL) solution, which uses XRP as a bridge asset to facilitate real-time cross-border payments. This process involves XRP being bought and sold almost instantly, allowing fiat currency to move between jurisdictions without the need for pre-funded accounts. Because XRP in ODL is transacted rapidly and doesn’t sit with buyers or sellers for long, it does not contribute to long-term supply pressure. It’s utility, not speculation.

Van Code also emphasizes that Ripple’s actual impact on trading volume is minimal. On most days, XRP’s global trading volume ranges from $500 million to over $2 billion. Ripple’s XRP distribution typically represents less than 1% of that volume. This small share is unlikely to influence price movement in a market where liquidity is deep and prices are driven by broader factors such as macroeconomic developments, regulatory news, or Bitcoin’s movements.

Ripple’s escrow mechanism is transparent and controlled. Every escrow release is publicly recorded and highly predictable. If Ripple intended to crash the market, it could have done so long ago. Instead, it has implemented one of the most transparent token release systems in the industry. Van Code’s conclusion is clear: Ripple’s monthly XRP releases are not the enemy. They’re part of a structured, utility-focused approach designed to support real-world use cases. Far from hurting XRP, this strategy may well be the foundation for its long-term growth and adoption.