Software Engineer Analysis Impact of Ripple 1 Billion XRP Monthly Release On XRP Price

Each month, Ripple unlocks 1 billion XRP from escrow , prompting fresh speculation that the company is “dumping” tokens on the market and suppressing XRP’s price. However, according to blockchain expert and software engineer Vincent Van Code, this popular narrative is not only misleading—it’s factually incorrect. In a detailed breakdown on X, Van Code dismantles the myth and offers a clear look into how Ripple’s escrow mechanism works and why it’s not the threat many believe it to be. The Truth About Ripple’s Escrow System Ripple introduced the XRP escrow system to bring predictability and transparency to the token’s supply. Since 2017, 55 billion XRP have been placed in monthly escrows, with 1 billion scheduled for release each month. These releases are automatic and verifiable on the blockchain, removing any uncertainty around how and when XRP enters the market. Ripple Releases 1 Billion XRP Monthly… But Is It Dumping the Price? Let’s Talk Facts Every month, Ripple unlocks 1 billion XRP from escrow, and every month someone shouts, “They’re dumping!” But is that really what’s happening — or are people misunderstanding the numbers… — Vincent Van Code (@vincent_vancode) June 12, 2025 However, as Van Code explains, the release does not equate to a sale. In reality, Ripple routinely places 80–90% of the monthly unlocked XRP back into new escrows. Only a fraction of the released tokens are used, and those that are serve very specific, utility-driven purposes. Not Market Dumps, But Utility Deployments Contrary to what critics often claim, Ripple is not offloading large amounts of XRP into the open market. In fact, since 2020, Ripple has halted programmatic sales, once the primary channel for open market distribution, due to community concerns. Today, the company’s XRP sales are tied directly to its On-Demand Liquidity (ODL) solution . ODL uses XRP as a bridge asset to facilitate real-time cross-border payments. The process involves XRP being bought and sold almost instantly, allowing fiat currency to move between jurisdictions without the need for pre-funded accounts. Because XRP in ODL is transacted rapidly and doesn’t sit with buyers or sellers for long, it does not contribute to long-term supply pressure. It’s utility, not speculation. This means that Ripple’s XRP usage is fundamentally different from market dumping. The token is put to work—transferred, recycled, and returned to circulation—not held or sold for profit. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Context Matters: Ripple’s Share Is Minimal Van Code also highlights how Ripple’s actual impact on trading volume is negligible. On most days, XRP’s global trading volume ranges from $500 million to over $2 billion. Ripple’s XRP distribution typically represents less than 1% of that volume. This small share is unlikely to influence price movement in a market where liquidity is deep and prices are driven by broader factors. Indeed, major crypto price swings are more often tied to macroeconomic developments, regulatory news, or Bitcoin’s movements, not routine, transparent token releases from Ripple. A Transparent and Controlled System Perhaps the most important point in Van Code’s analysis is that Ripple’s escrow mechanism is neither hidden nor erratic. Every escrow release is publicly recorded and highly predictable. If Ripple intended to crash the market, it could have done so long ago. Instead, it has implemented one of the most transparent token release systems in the industry. Van Code’s conclusion is clear: Ripple’s monthly XRP releases are not the enemy. They’re part of a structured, utility-focused approach designed to support real-world use cases. Far from hurting XRP, this strategy may well be the foundation for its long-term growth and adoption. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Software Engineer Analysis Impact of Ripple 1 Billion XRP Monthly Release On XRP Price appeared first on Times Tabloid .

Source: TimesTabloid