
Ripple is set to unlock 1 billion XRP from its escrow wallet on September 1, raising fears of a major sell-off. However, crypto trader Kamilah Stevenson says the full 1 billion XRP is unlikely to enter circulation at once.
But the key question is whether this additional supply of XRP could crash the XRP price
Ripple unlocks 1 billion XRP on the first day of every month through an escrow system created in 2017. At the time, the company locked 55 billion XRP in 55 separate escrow contracts, with each holding 1 billion XRP.
But Ripple does not simply sell the full 1 billion XRP after each unlock.
Prominent crypto trader Kamilah Stevenson said that “Available is not the same as sold.” Most of the unlocked tokens are usually locked back into escrow.
Within hours of the monthly unlock, Ripple moves around 800 million to 900 million XRP back into new escrow contracts within hours of the unlock. The remaining 200 million to 100 million XRP goes to Ripple’s operational wallets and can be used for business needs.
Also Read : XRP News: CEO Garlinghouse Says Ripple Revenue Set To More Than Double
On average, Ripple has historically returned around 700 million to 900 million XRP, leaving about 100 million to 300 million XRP outside escrow.
In August, around 700 million XRP was reportedly returned to escrow. If September follows a similar pattern, the amount of XRP added to circulation could be much lower than the headline 1 billion figure.
The remaining XRP can be used for institutional payments, including providing liquidity for cross-border transactions through Ripple Payments or supporting new lending projects with Clearpool and Cicada Partners.
These transfers can also be handled through private OTC desks, meaning they do not directly hit public exchange (Binance and Coinbase) order books or create immediate selling pressure.
Ahead of Ripple’s release of 1 billion XRP tokens, its price is already down by 1%, now trading at $1.36. Stevenson says that the predictable schedule makes XRP’s supply easier for the market to track.
She said, “Ripple traded their flexibility for predictability.”
Another key event could have a major impact on XRP price, as the U.S. Senate’s scheduled vote on the CLARITY Act is on September 15, 2026. The outcome could influence market sentiment and XRP’s regulatory outlook.
If the vote supports the bullish case, XRP could retest its recent $1.70 high and potentially break above it.
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