Ripple’s monthly escrow routine has again captured the attention of market participants. According to on-chain tracking platform Whale Alert, 700 million XRP, worth roughly $1.75 billion, was locked in escrow within hours following the release of 1 billion XRP on November 1.
The alerts showed two separate transactions. The first transaction involved 500 million XRP, and the second locked 200 million XRP.
These transactions occurred after Ripple moved 500 million XRP to unknown wallets in quick succession.
Another notable part of this sequence is that Ripple has yet to perform its monthly escrow release. The company typically unlocks 1 billion XRP from escrow at the start of each month, a pattern it has maintained for years. As of press time, that release has not occurred, creating speculation among market observers about whether the schedule will proceed as usual.
How Ripple’s Escrow System Works
Ripple introduced its escrow system in December 2017 to ensure transparency and predictability in the XRP supply. The company placed 55 billion XRP, which is just over half of the total supply, into a series of escrow accounts on the XRP Ledger.
Each month, 1 billion tokens are released automatically, providing Ripple with liquidity for partnerships, institutional sales, and ecosystem incentives. Any unused XRP from these monthly releases is customarily returned to new escrows, extending the overall timeline. This mechanism limits the amount of XRP entering circulation at any given time while maintaining confidence that Ripple cannot suddenly flood the market.
The locking transactions reported by Whale Alert align with this long-standing process. However, the absence of the usual 1 billion unlock so far has prompted attention within the community. The escrow system has faced delays, but Ripple usually makes up before the end of the month.
What’s Next for XRP?
XRP’s price has traded steadily despite the escrow developments. The asset is trading at $2.51, up 0.41% from yesterday, and holding strong despite the recent decline. The company’s practice of re-locking unused XRP has helped prevent sudden liquidity shocks, and the transparency of these escrow movements remains a key aspect of investor trust.
Many experts believe Ripple’s escrow system protects XRP’s price, and sticking to the schedule by unlocking 1 billion tokens could help reinforce the confidence of market participants. For now, the company’s decision to lock 700 million XRP with the delayed release stands out as one of the more interesting recent shifts in its long-running monthly cycle.