The Ripple escrow system, designed for controlled token distribution, has implemented a modified release schedule for XRP in May. Although this month saw 1 billion XRP unlocked as the company usually does, it was done across two separate transactions on two different days.
On May 3, Ripple released 500 million XRP, following the release of 500 million XRP on May 1. The company released 100 million XRP and followed up with the release of 400 million XRP shortly after. Both transactions directed the tokens to the same address which currently holds them.
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An earlier transaction on May 2 saw the return of 500 million XRP back into escrow. This transaction contributed to a total of 800 million XRP re-locked by Ripple this month. These new transactions could be the company making up for the reduced escrow release at the start of May.
Ripple’s Escrow Release Hiccups
This modified release schedule follows a trend observed throughout 2024. Since the escrow releases began, the company released 1 billion XRP on the first day of every month and locked back 800 million XRP shortly after. However, Ripple has failed to adhere to this schedule multiple times in 2024.
January is the only month where the standard 1 billion XRP unlock occurred on the first day. Ripple released only 600 million XRP on February 1, followed by an additional 400 million XRP toward the end of the month. March and April continued this pattern, with a single 500 million XRP release taking place at the beginning of each month.
The Ripple community generally anticipates the release of 1 billion XRP per month. This year’s deviations from the standard schedule have raised concerns about potential market volatility. However, there haven’t been any significant price fluctuations observed thus far. Notably, Ripple’s consistent practice of re-locking 800 million XRP monthly is likely meant to mitigate any major market impact.
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XRP’s Current State and the Future of the Escrow Releases
XRP is currently showing recovery signs, trading at $0.5229, with a 2.24% increase over the past 24 hours. XRP crossed $0.53 for the first time in over a week on May 2, and many are confident it will regain that level soon.
Read Also: No XRP Left Escrow On October 1. Has Ripple Ended the Monthly 1 Billion XRP Release? Details
While the standard 1 billion XRP release may not always occur on the first day of the month, the consistent re-locking of a significant portion appears to be stabilizing the market and ensuring a controlled flow of XRP into circulation.
Ripple has also consistently made up for the shortfalls, showing the company is sticking to its monthly 1 billion XRP release. An expert recently shared the importance of the escrow releases for XRP’s future as a global reserve currency, showing the importance of Ripple’s pre-planned releases.
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