Ripple is set to unlock 1 billion XRP from escrow on September 1 as part of its long-running monthly release program, placing over $1 billion worth of tokens back under the company’s control.
The scheduled release comes as XRP continues to trade above the psychologically important $1 level, consolidating after its recent rally in line with broader cryptocurrency market sentiment.
The escrow mechanism was introduced in 2017 when Ripple locked 55 billion XRP into a series of time-locked contracts designed to provide transparency around token supply.
Under the arrangement, up to 1 billion XRP becomes available on the first day of every month, although Ripple typically returns a significant portion of the unlocked tokens to escrow.
Historical data shows that Ripple generally re-locks between 600 million and 800 million XRP, resulting in a net addition of roughly 200 million to 400 million XRP to circulating supply.
Analysts note that Ripple has maintained this pattern across multiple market cycles, limiting the amount of new XRP entering circulation.
During August’s release, the company returned 700 million XRP to escrow, leaving a net increase of about 300 million tokens. XRP subsequently traded in line with broader crypto market trends rather than experiencing a prolonged selloff.
Impact on XRP price
Still, investors closely watch the monthly escrow events due to their scale. At current prices, September’s 1 billion XRP unlock is worth about $1.3 billion, making it one of the largest recurring token releases in the crypto market.
Historical data suggests XRP’s monthly escrow releases have had a limited impact on price, as the schedule is known in advance and most unlocked tokens are typically returned to escrow.
While the events can trigger short-term volatility, they have not consistently led to sustained declines in XRP.
The September unlock will also further reduce Ripple’s escrow holdings, which have fallen from 55 billion XRP in 2017 to roughly 38 billion XRP. As reserves continue to decline, investors are watching how Ripple manages future distributions and whether growing institutional demand can absorb the additional supply.
XRP price analysis
By press time, XRP was trading at $1.37, down about 1.2% over the past 24 hours. On the weekly timeframe, the asset was lower by approximately 8%.
Despite the correction, XRP remains in a bullish trend, trading above both its 50-day SMA of $1.14 and 200-day SMA of $1.28, indicating buyers remain in control across the medium and long term.
Meanwhile, the 14-day RSI of 60.45 remains in neutral territory, signaling positive momentum without the token being overbought.
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