Ripple’s monthly release of 1 billion XRP from escrow has long been misunderstood as a coordinated sell-off that pressures the token’s price. However, closer inspection reveals a well-structured, transparent, and sustainable liquidity management strategy—not a market dump.

Each month, Ripple unlocks 1 billion XRP through a smart contract escrow system built into the XRP Ledger. This action is often misinterpreted as Ripple injecting large amounts of XRP into the market. But in reality, the majority of this XRP—typically more than 80%—is re-locked into new time-based escrows, making it inaccessible for months or years to come. This protocol is automated and publicly verifiable on-chain, reinforcing Ripple’s commitment to responsible token handling.

The remaining 10–20% of the unlocked XRP is not dumped into the market. Instead, it is used for operational costs, partnerships, and—most significantly—for liquidity in Ripple’s On-Demand Liquidity (ODL) network. ODL is Ripple’s flagship payment solution that uses XRP as a bridge currency to facilitate fast, cross-border transactions. When financial institutions use ODL, they convert fiat into XRP, transfer it globally within seconds, and cash out into the destination currency. This rapid, transaction-focused use does not equate to speculative holding or market dumping.

Crypto analyst Vincent Van Code clarifies that Ripple’s use of XRP through ODL represents a crucial real-world utility rather than a price-influencing tactic. According to him, most of the XRP that enters the market via Ripple is rapidly recycled through utility-based flows and not left to stagnate in speculation-driven cycles.

Van Code also emphasizes that Ripple’s XRP sales account for less than 1% of XRP’s average daily trading volume. Given that XRP regularly posts daily volumes exceeding $200 billion in 2025, this sub-1% figure demonstrates that Ripple’s activity has a negligible impact on price trends. In contrast, broader macroeconomic events—like Bitcoin movements, SEC rulings, or ETF developments—tend to have a much stronger influence on XRP’s performance.

Looking at XRP’s price data for 2025 further supports this view. Despite periodic volatility, XRP has gained over 335% year-to-date, outperforming Bitcoin and Ethereum. In January, it surged 46%, and while the following months saw mixed results—with slight dips in February (-29.3%) and March (-2.52%)—April posted a 4.98% gain. May and June witnessed modest declines, but overall, XRP has held its gains relatively well amid broader market fluctuations.

Critics often mischaracterize Ripple’s monthly escrow releases as deliberate attempts to suppress the price. But the XRP Ledger’s escrow system ensures that any released tokens are transparently traceable and time-locked. Re-locking more than 80% of tokens every month shows Ripple’s long-term alignment with XRP holders and institutional partners.

Additionally, multiple independent reports have verified that the bulk of Ripple’s XRP usage fuels transactional liquidity, especially within its enterprise-grade payments infrastructure. These operations are strategic, not speculative.

To conclude, Ripple’s monthly XRP escrow process is misunderstood by many in the crypto space. There is no evidence to support the claim that Ripple is dumping XRP to harm the market. Instead, Ripple utilizes a transparent, measured approach to releasing XRP, supporting ecosystem growth, expanding liquidity, and powering real-world use cases through ODL. The numbers speak for themselves—Ripple’s involvement with XRP is a pillar of its utility, not a drag on its value.