Ripple Adjusts XRP Supply Strategy? 700M Tokens Locked Again

Ripple has locked 700 million XRP tokens back into escrow, according to a recent alert from Whale Alert. As part of its regular escrow program, Ripple releases 1 billion XRP each month to keep the token supply predictable. These tokens are used for institutional sales, operational costs, and other purposes.

With XRP’s price dipping and massive token transfers happening behind the scenes, there’s more to this story than meets the eye. Let’s break down what’s going on.

Ripple Breaks Its Usual Pattern

However, on April 1, Ripple did not follow its usual process. Instead of releasing 1 billion XRP, it moved the tokens between wallets and re-escrowed 700 million. This unexpected move has led to speculation about possible changes in its supply strategy. Since then, XRP’s price has dropped 1.87% to $2.09.

Many believe this could signal a shift in Ripple’s automated release system. Is the company adjusting its supply plan, or is it preparing for a major market move?

Massive XRP Transfers Before Re-Escrow

On April 2, Ripple carried out several large XRP transactions, shifting hundreds of millions of tokens worth billions of dollars. The key transfers included:

• 300 million XRP ($629 million) to wallet “rBg…91m”
• 200 million XRP ($420 million) to wallet “rKD…2op”
• 170 million XRP ($357 million) to wallet “rKD…2op”
• 330 million XRP ($693 million) to wallet “rDd…eCK”

Following these transactions, Ripple re-locked 700 million XRP into escrow—370 million from “rKD…2op” and 330 million from “rDd…eCK”. Meanwhile, the 300 million XRP in “rBg…91m” remains available, likely for operational use or future strategic moves.

Ripple’s Escrow Strategy Might Be Changing

This isn’t the first time Ripple has returned a large portion of XRP to escrow. Last month, instead of releasing 1 billion XRP, it locked 700 million XRP back. This pattern suggests Ripple could be refining its approach to managing token supply.

Adding to the speculation, Ripple CEO Brad Garlinghouse recently suggested that the company may reduce XRP sales in the future, a move that could relieve some selling pressure on the token.

Ripple’s Influence on XRP

Despite these changes, Ripple still holds over 40% of the total XRP supply. The company also recently withdrew its cross-appeal against the U.S. Securities and Exchange Commission (SEC) after the regulator agreed to ask the court to remove a ban preventing Ripple from selling XRP to institutional clients. This restriction was originally part of Judge Analisa Torres’s ruling last August.

With Ripple altering its escrow approach and hinting at reduced sales, investors are watching closely. Are these changes a sign of a new strategy, or is Ripple simply adjusting its supply model?

The market reaction in the coming weeks could provide some answers.