Ripple is set to unlock 1 billion XRP next week, on Tuesday, September 1, as part of its long-running escrow program on the XRP Ledger (XRPL).
The upcoming unlock has put renewed attention on the token’s supply dynamics, as XRP has finally managed to break through following months of weakness, trading at $1.43 at press time, versus $1 at the time of the previous unlock.
Moreover, a new filing with the U.S. Securities and Exchange Commission (SEC) also indicates that Ripple could potentially release additional XRP from escrow if U.S. lawmakers pass the CLARITY Act.
Indeed, such a move could allow more XRP to enter circulation than the company’s typical monthly escrow release, potentially increasing the token’s available supply to meet higher demand.
Likewise, if the filing accurately reflects Ripple’s plans, it could indicate that the company expects demand for XRP to increase as the U.S. establishes a clearer regulatory framework for digital assets. Such a scenario could have broader implications for XRP’s supply dynamics and, potentially, the price.
How much XPR will Ripple unlock on September 1?
As mentioned, the upcoming unlock is part of a system Ripple introduced in late 2017, when the company placed 55 billion XRP into time-based escrow contracts. Under the arrangement, up to 1 billion XRP is released at the beginning of each month.
However, the company has historically not put the full amount into circulation. Rather, it typically returns between 600 million and 800 million XRP to new escrow contracts immediately after the unlock. That way, only about 200 million to 400 million XRP actually enter circulation.
If the trend continues next week, the net monthly addition to circulating supply would be worth approximately $286 million to $572 million at the current $1.43 price. However, although escrow unlocks can sometimes contribute to short-term volatility, XRP usually stabilizes quickly, meaning the escrows rarely affect the price to a significant degree.
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