Ripple Prepares to Unlock 1 Billion XRP Amid Price Surge and Market Scrutiny

• Ripple will unlock 1 billion XRP (USD $3.1B) on February 1 from Ripple accounts (26) and (27), retaining around 20% for sales.
• XRP rose by 45% in January (reaching USD $3.10), but Ripple’s monthly sales challenge the sustainability of that growth.

Ripple will release 1 billion XRP from escrow accounts on February 1, a monthly process established in 2017 to manage the distribution of its token supply. At current prices near $3.10 per XRP, the unlocked tokens hold a combined value of $3.10 billion.

The company typically sells a portion of these tokens each month, with recent allocations ranging from 200 million to 470 million XRP.

The upcoming unlock involves three escrows labeled “ Ripple (26) ” and “ Ripple (27) ” releasing 400 million, 100 million, and 500 million XRP respectively. This follows prior unlocks from accounts “ Ripple (24) ” and “ Ripple (25) ” throughout 2024.

Ripple has historically re-locked approximately 70-80% of unlocked XRP into new escrows , delaying their circulation by several years. In January, the company reserved 300 million XRP for potential sales, a practice critics argue could pressure prices if demand falters.

XRP’s price has risen 45.44% over the past month, reaching $3.10 despite Ripple’s ongoing sales. Analysts attribute the gains to broader crypto market trends and speculation around Ripple’s legal disputes with the SEC .

However, sustaining upward momentum requires balancing retail and institutional demand against Ripple’s monthly distributions, which expand the token’s circulating supply.

Market participants monitor whether buyers can absorb Ripple’s sales without triggering price declines. In January, demand outpaced the 300 million XRP released, but February’s larger allocation introduces new variables.

The escrow system, designed to provide predictable supply schedules, remains central to XRP’s market structure. Ripple retains 55 billion XRP in escrow, with unlocks scheduled through 2027.

XRP’s recent performance contrasts with its stagnation between 2021 and 2023, when legal uncertainties weighed on prices. The SEC’s ongoing lawsuit alleges XRP constitutes an unregistered security, though a 2023 court ruling partially favored Ripple by classifying sales to retail investors differently from institutional ones.

The February unlock coincides with heightened attention to Ripple’s treasury management

Critics argue concentrated sales by a single entity risk distorting market dynamics, while supporters note the escrow system’s transparency compared to other projects. XRP’s circulating supply now stands at 54.6 billion tokens, with Ripple controlling roughly 46% of the total 100 billion supply.  

As the unlock approaches, traders assess technical indicators and order book liquidity. XRP must hold support near $3.00 to avoid pullbacks, while resistance levels around $3.50 loom as potential targets.

The interplay between Ripple’s distribution strategy and market appetite will likely dictate short-term price action, testing whether recent gains reflect sustainable demand or speculative fervor.