Reality Check: Does Ripple Liquidate XRP Monthly?

Every month, Ripple unlocks 1 billion XRP from the escrow account, and this routine action often stirs rumors about a price fall. But is Ripple flooding the market? According to cryptocurrency analyst Vincent Van Code, the truth behind Ripple's escrow system is not so dramatic but much more strategic. The way the monthly XRP escrow of Ripple works Ripple uses a programmed escrow system integrated within the XRP Ledger. Each month, 1 billion XRP is unlocked, but only a small portion is brought to the market. Vincent Van Code explains that over 80% of XRP is locked into new escrow accounts immediately. The remaining XRP, usually 10% to 20%, is allocated for operational costs, liquidity needs, and Ripple's strategic partnerships. This method prevents sudden supply exceeding demand and ensures long-term sustainability. Where will the locked XRP go? Locked XRP will be placed into new time-locked escrow accounts on the blockchain. These funds are not held directly by Ripple but are managed by the integrated escrow protocol of the XRP Ledger. This design ensures that XRP cannot be accessed or sold before the deadline, eliminating concerns about a sudden widespread sell-off. The role of XRP in Ripple's On-Demand Liquidity system Ripple uses XRP to support the On-Demand Liquidity platform (ODL), enabling fast and low-cost international transactions. When financial institutions use ODL, they convert fiat currency into XRP, transfer money across borders, and then convert it back into local currency—all in just a few seconds. This use case means that XRP is not held for speculation; it is bought and sold quickly to complete actual transactions. Therefore, it has minimal impact on long-term price volatility. Ripple's sales volume is just a small part of the market volume. Van Code also pointed out that Ripple's XRP sales account for less than 1% of the daily market volume. With a 24-hour trading volume exceeding 212 billion dollars, the idea that Ripple is heavily manipulating prices downward through these sell-offs is incorrect. Factors such as Bitcoin prices, regulatory news, and institutional activities play a much larger role in market fluctuations. He added that if Ripple tried to liquidate XRP, the market would have likely reacted much more severely by now. XRP market performance in 2025 Despite the market volatility, XRP still outperformed both Bitcoin and Ethereum, achieving an annual growth rate of 335.1%. Here is the development of XRP in 2025: January: +46% February: -29.3% March: -2.52% April: +4.98% May: -0.80% June ( to date ): -2.38% Last 7 days: -0.8% Last 24 hours: -6.1% Despite short-term corrections, the long-term growth and increasing practical usability of XRP remain very promising. Reality check: Is Ripple dumping XRP? No, Ripple does not dump XRP. Ripple unlocks 1 billion XRP each month, but over 80% is locked back into new escrow contracts. Only 10–20% is used for operations and liquidity, mainly to power liquidity on-demand transactions (ODL)—not to flood the market. The XRP ledger ensures this process is transparent and time-locked. Ripple's sales account for less than 1% of daily volume, therefore claims of price manipulation are false.