Ripple is set to release 1 billion XRP, valued at approximately $2.5 billion based on current market prices, from escrow on November 1. This release is part of Ripple’s established monthly schedule since 2017, which aims to maintain a predictable token supply through its liquidity management system.
Each month, Ripple unlocks 1 billion XRP but usually re-locks about 70–80% back into new escrows. This means only about 200–300 million XRP are typically used for various operational needs, including institutional sales and ecosystem support. The entire process is fully auditable on-chain, designed to mitigate any sudden supply shocks that could affect the market.
The upcoming unlock is attracting significant attention, especially in light of XRP’s recent price fluctuations. Over the course of October, XRP traded between $2.30 and $2.68, buoyed by renewed optimism regarding Ripple’s expansion into institutional markets and the announcement of Evernorth’s billion-dollar listing plans.
Despite the substantial amount of XRP being released from escrow, analysts anticipate that there will be minimal immediate price impact since most of the tokens are expected to return to escrow. Market participants will be keenly observing how much of the released XRP Ripple decides to re-lock. This decision could serve as an important indicator of Ripple’s liquidity strategy and sales plan as they approach 2026. A lower re-lock percentage might suggest an intention for increased distribution or funding activities.
In the broader community discussions, the upcoming escrow release has reignited debates about how to accurately calculate XRP’s market capitalization. Developer Vincent Van Code pointed out that the effective supply of XRP might be overstated, especially since there are 35 billion XRP locked in escrow. He drew parallels between this situation and Bitcoin’s lost or dormant coins, arguing that current market caps could misrepresent actual liquidity.
Former Ripple CTO David Schwartz addressed these points by clarifying that XRP locked in escrow is non-circulating until it is officially unlocked, although secondary rights to future releases can be traded similarly to forward contracts.
This escrow release comes at a crucial time for Ripple, as Evernorth—backed by Ripple—has unveiled plans for a public listing aimed at raising over $1 billion, thus becoming the largest institutional XRP treasury company. Additionally, the involvement of Japan’s gumi Inc. in partnership with Ripple and SBI Group further underscores XRP’s expanding role in institutional finance.
Throughout October, XRP’s trading activity exhibited strong technical movement, briefly breaking resistance at $2.63 before retracting in response to wider market volatility triggered by the Federal Reserve’s recent policy changes.
For XRP holders, the scheduled unlock on November 1 is a routine occurrence but holds strategic significance. If Ripple adheres to its established re-lock patterns, any price pressure may remain limited. However, market sentiment could hinge on Ripple’s management of liquidity after the unlock and whether the anticipated institutional flows from the Evernorth initiative start to manifest in on-chain activity.
