XRP News Today: Ripple Releases 1 Billion XRP Tokens, 330 Million Enter Circulation, Price Drops 2%

Ripple, the blockchain-based payment protocol, has released 1 billion XRP tokens from its escrow accounts this month, continuing a distribution mechanism that has been in place since 2017. The total value of this latest release exceeds $2.18 billion, but only 330 million XRP have entered circulation. The remaining 670 million tokens were locked back into escrow to maintain price stability. This move is part of Ripple's structured approach to managing the supply of its native token, XRP, which involves releasing 1 billion tokens from escrow each month through a series of pre-programmed transactions. This month’s transactions were recorded on 1 June 2025 and took place in three batches: 400 million XRP, 500 million XRP, and 100 million XRP were transferred into Ripple-controlled wallets. This method, while predictable, is closely watched by market participants as it can influence investor sentiment and trading volumes.

Ripple originally locked 55 billion XRP into escrow in 2017 to bring transparency and predictability to XRP’s supply schedule. The company then began releasing 1 billion tokens every month, with any unused tokens returned to escrow. This framework is intended to ensure liquidity for Ripple’s operations without overwhelming the market. Despite the release of 1 billion XRP, Ripple returned 670 million tokens to escrow. As a result, only 330 million XRP entered the market this month. The tokens that remain in circulation are used to fund Ripple’s operations, partnerships, ongoing ecosystem activity, and maintain liquidity for its broader payment infrastructure. This careful step helps keep prices from getting out of control. Ripple has followed this pattern for years, and it has worked well so far.

Following the 1 June release, XRP’s market price slipped approximately 2% to trade at $2.20. The cryptocurrency’s total market capitalisation now stands at around $129 billion. Although the drop was modest, it reflects how sensitive the market remains to changes in token supply, even if a large portion of the released tokens are not immediately sold. Historically, however, these monthly releases have had limited long-term effect on XRP’s price trend, largely due to Ripple’s consistent practice of re-escrowing unused tokens.

This structured approach to managing the supply of XRP is designed to balance the need for liquidity with the goal of maintaining price stability. By releasing a predictable amount of tokens each month and re-escrowing any unused tokens, Ripple aims to provide a steady supply of XRP for its operations while minimizing the impact on the market. This strategy has been in place since 2017 and has helped to build trust and transparency in the XRP ecosystem.

The recent release of 1 billion XRP tokens and the subsequent re-escrowing of 670 million tokens is a continuation of this strategy. The fact that only 330 million XRP entered circulation this month highlights Ripple's commitment to maintaining price stability. The modest 2% dip in XRP's market price following the release is a testament to the market's sensitivity to changes in token supply, but it also underscores the effectiveness of Ripple's supply management strategy.

In conclusion, Ripple's release of 1 billion XRP tokens from its escrow accounts this month is part of a well-established distribution mechanism designed to ensure liquidity and price stability. The re-escrowing of 670 million tokens and the modest impact on XRP's market price demonstrate the effectiveness of this strategy. As Ripple continues to manage the supply of XRP in this structured manner, it is likely that the market will remain responsive but stable, reflecting the company's commitment to transparency and predictability.