Ripple Explained: How Escrow Wallet Protects XRP Price

Crypto researcher SMQKE recently emphasized the significance of XRP’s escrow mechanism in protecting the asset’s price stability. Referring to official documentation, SMQKE wrote, “Remember, the escrow PROTECTS XRP’S PRICE.” The comment was accompanied by an excerpt from Ripple Labs’ 2017 announcement, which explained the structure and purpose of XRP escrow accounts. At the time, Ripple Labs committed to locking up 55 billion XRP in cryptographically secured escrow contracts. These contracts were designed to expire sequentially over 55 months, beginning in January 2018, releasing 1 billion XRP per month back to Ripple for potential use. Ripple Labs introduced this mechanism explicitly to reduce uncertainty around XRP’s future supply. According to the document, unused XRP at the end of each month would re-enter escrow in a new account, ensuring that large amounts of XRP would not flood the market at once, thereby avoiding substantial downward pressure on the asset’s price. Ripple also stated that the released XRP would be used to incentivize market makers and institutional investors by providing liquidity and tighter spreads between currency pairs. Remember, the escrow PROTECTS XRP’S PRICE. This is documented. https://t.co/jdDCyyoQUT pic.twitter.com/eNJ10HRppW — SMQKE (@SMQKEDQG) July 20, 2025 Community Perspectives on Price Dynamics The tweet by SMQKE received a comment from another X user, Evil Jungle King, who added perspective on factors influencing XRP’s price beyond the escrow mechanism. Evil Jungle King noted , “XRP released from escrow isn’t the only thing impacting pricing. I suspect that many large hold wallet holders sell holdings to add liquidity and prevent sharp spikes in pricing. If you’ve got tons of XRP, slow steady appreciation is more important than instant but fleeting wealth.” This observation suggested that private holders with substantial XRP balances may also play a role in stabilizing market prices through their selling strategies, aligning with the broader goal of avoiding sudden volatility. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Recent Data on Ripple’s Escrow Holdings Further context was provided by a November 4, 2024, report from Times Tabloid, which cited crypto lawyer Bill Morgan’s analysis of Ripple’s updated escrow balances. According to Morgan, Ripple’s share of XRP held in escrow declined from approximately 55 percent of the total supply in 2020 to under 39 percent as of September 30, 2024. This trend illustrates Ripple’s gradual release of XRP over the past years based on its escrow schedule. Morgan shared additional figures indicating that Ripple currently holds around 4.4 billion XRP directly, with approximately 38.9 billion XRP remaining in on-ledger escrow as of the end of Q3 2024. Decentralization and Price Protection SMQKE’s post underscored the original intent of the escrow: to provide a predictable supply and mitigate the risk of a price collapse from excessive, sudden market supply. The declining share of XRP under Ripple’s escrow control , as highlighted by Morgan, has also raised ongoing conversations about decentralization, as Ripple’s influence over the circulating supply diminishes over time. The escrow’s design to automatically recycle unused XRP each month continues to serve as a safeguard, preventing a sudden influx of liquidity that could depress prices. In summary, SMQKE reiterated the documented function of XRP’s escrow as a protective measure for the asset’s price stability. 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 advised to conduct thorough 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 X , Facebook , Telegram , and Google News The post Ripple Explained: How Escrow Wallet Protects XRP Price appeared first on Times Tabloid .

Source: TimesTabloid