This method, while predictable, is closely watched by market participants as it can influence investor sentiment and trading volumes.

Ripple originally locked 55 billion XRP into escrow in 2017 to bring transparency and predictability to XRP’s supply schedule.

The company then began releasing 1 billion tokens every month, with any unused tokens returned to escrow.

This framework is intended to ensure liquidity for Ripple’s operations without overwhelming the market.

Just 330M XRP circulated in June

Despite the release of 1 billion XRP, Ripple returned 670 million tokens to escrow. As a result, only 330 million XRP entered the market this month.

The tokens that remain in circulation are used to fund Ripple’s operations, partnerships, ongoing ecosystem activity, and maintain liquidity for its broader payment infrastructure.

This careful step helps keep prices from getting out of control. Ripple has followed this pattern for years, and it has worked well so far.

XRP price and volume dip post-unlock

Following the 1 June release, XRP’s market price slipped approximately 2% to trade at $2.20.

The cryptocurrency’s total market capitalisation now stands at around $129 billion.

Although the drop was modest, it reflects how sensitive the market remains to changes in token supply, even if a large portion of the released tokens are not immediately sold.

XRP’s 24-hour trading volume also took a hit, falling by 19.5% to hover near $2 billion.

This decline may indicate short-term caution among investors, particularly those monitoring Ripple’s actions closely.

Historically, however, these monthly releases have had limited long-term effect on XRP’s price trend, largely due to Ripple’s consistent practice of re-escrowing unused tokens.

The post Ripple releases $2.18B in XRP, price dips 2% appeared first on Invezz