The cryptocurrency market has seen a strong recovery since the start of 2025, with most major digital assets posting significant gains. Bitcoin surged 48% over the past three months, Ethereum climbed 44%, Bitcoin Cash rocketed up 134%, and EOS jumped 121%. Yet, amid this broad rally, one major player has barely moved — XRP (Ripple).
Despite being widely recognized as a top-tier cryptocurrency, XRP has gained just 2.5% in the same period, effectively moving sideways like a stablecoin. This underperformance raises a critical question: Why is XRP not participating in the market upswing? The answer lies in a combination of tokenomics, market supply pressure, and strategic decisions by Ripple Labs.
Understanding XRP and Its Unique Structure
XRP, the native cryptocurrency of the Ripple network, is designed to enable fast, low-cost international payments. Unlike Bitcoin or Ethereum, XRP is not mined. All 100 billion tokens were pre-mined at launch by Ripple Labs, formerly known as Opencoin.
The total supply of XRP is fixed, and while no new coins are created, the circulating supply increases gradually as Ripple releases tokens from escrow. This mechanism was introduced to ensure transparency and reduce concerns about sudden dumps — but recent data suggests otherwise.
Ripple’s Escrow Releases: A Flood of New Supply
According to CoinPost, a Japanese crypto news outlet, the circulating supply of XRP has increased from approximately 40.79 billion at the end of 2018 to 41.97 billion in just four months — an increase of 1.18 billion XRP.
While Ripple claims these releases are part of a transparent escrow system meant to decentralize ownership and reassure the market, the reality is that each month, up to 1 billion XRP are released from escrow. Any unsold tokens are returned to new escrow contracts, but the ones that are sold enter the market directly.
Assuming an average price of $0.30 per XRP** (approximately 2.1 CNY) during this period, Ripple effectively **monetized over $350 million worth of XRP — roughly $250 million USD after accounting for operational costs and reinvestment.
This continuous influx of new tokens creates consistent selling pressure, which offsets bullish market sentiment and keeps XRP’s price range-bound.
How Much XRP Does Ripple Still Hold?
Let’s break down the current distribution:
- Total supply: 100 billion XRP
- Circulating supply: ~41.97 billion XRP
- Remaining held by Ripple: ~58.03 billion XRP
That means more than half of all XRP tokens are still under Ripple’s control — either in escrow or reserved for future use. While Ripple states these funds support product development, partnerships, and ecosystem growth, the market interprets this as a long-term overhang.
Even more concerning: Ripple’s three co-founders collectively held nearly 20 billion XRP in the early days. Although some have sold portions over time, there's no public confirmation that all founder-held tokens have been fully released or locked.
The Decentralization Dilemma
Ripple argues that moving tokens into escrow is a step toward greater decentralization — a common narrative among projects aiming to build trust. However, many investors question why they should bear the cost of this transition.
If the goal is decentralization, why not burn a portion of the reserve? Or lock up founder holdings permanently? Instead, Ripple continues to monetize its holdings through regular releases — a move that benefits the company but may hinder price appreciation.
This dynamic mirrors tactics used by some lesser-known projects — often labeled “shitcoins” — where teams promise community ownership while slowly dumping their stash.
Market Perception vs. Fundamental Value
Despite the price stagnation, Ripple continues to make progress on the fundamental side:
- Partnerships with banks and financial institutions
- Expansion of RippleNet across emerging markets
- Ongoing development of CBDC (Central Bank Digital Currency) solutions
However, market perception often outweighs fundamentals in crypto. When investors see a constant stream of new supply hitting exchanges, they hesitate to buy — especially if previous rallies have been erased by sudden sell-offs.
Moreover, regulatory uncertainty around XRP’s status as a security continues to linger, further dampening institutional interest.
Frequently Asked Questions (FAQ)
Q: Is Ripple selling XRP directly on exchanges?
A: Ripple does not typically sell XRP directly on public exchanges. Instead, it releases tokens from escrow and sells them through private agreements with market makers and institutional partners. However, these tokens eventually reach exchanges as buyers resell them.
Q: Does all released XRP get sold immediately?
A: No. Each month, up to 1 billion XRP are released from escrow. Only the amount sold enters circulation; unsold tokens are re-locked into new 12-month escrow contracts.
Q: Can XRP go up if Ripple keeps releasing supply?
A: Yes — but only if demand outpaces supply. Historically, large releases have coincided with price dips. For sustained growth, adoption must accelerate enough to absorb the monthly inflows.
Q: How can I check how much XRP was released each month?
A: Ripple publishes monthly escrow reports on its official website, detailing releases, sales, and re-locks. Third-party analytics platforms also track these metrics in real time.
Q: Are Ripple’s escrow releases legal and transparent?
A: Yes. Since 2017, Ripple has used a transparent escrow system to manage its token releases. While the process is auditable, critics argue it still gives Ripple disproportionate control over market conditions.
What This Means for Investors
For long-term holders, the current situation presents both risk and opportunity:
- Risk: Continued supply pressure could delay price appreciation, even in a bull market.
- Opportunity: If Ripple uses funds wisely to expand adoption and revenue, future demand could eventually absorb all released tokens.
Still, investors should remain cautious. A project controlling over half its token supply inherently carries centralization risks — especially when those tokens are gradually monetized.
👉 See how top analysts evaluate token supply trends before making investment decisions.
Final Thoughts
XRP’s stagnation isn’t due to lack of utility or failed technology — it’s primarily driven by ongoing supply expansion fueled by Ripple’s strategic token releases. While framed as a move toward decentralization, the reality is that each release adds downward pressure on price unless matched by strong demand.
For XRP to break out of its sideways trend, two things must happen:
- Increased real-world adoption through RippleNet and cross-border payment solutions.
- Stronger buying pressure from retail and institutional investors confident in Ripple’s long-term vision.
Until then, XRP may continue to underperform despite broader market optimism.
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