Ripple Escrow Balance Falls to 38.9B XRP: Here’s What It Means

The amount of XRP in Ripple’s escrow reserve has reduced significantly to 38.9 billion from the 55 billion coins initially locked in 2017.  

Ripple recently released its Q3 2024 report, giving its clients an overview of its overall performance and state of the XRP Ledger (XRPL) in the third quarter of 2024. 

Ripple’s XRP Holdings 

In the report, Ripple revealed its XRP holdings, including those held in its escrow reserve. As of September 30, 2024, Ripple’s liquid XRP holdings stood at 4,436,713,796 (4.43 billion). 

In addition, the company’s escrow reserve held 38,900,000,005 (38.9 billion) XRP on September 30. Notably, Ripple’s Q3 report has triggered widespread reactions within the XRP community, with a focus on the escrow reserve. 

Ripple XRP Escrow 

For context, Ripple made a decision in 2017 to lock 55 billion XRP in several XRPL-based escrow accounts. The 55 billion XRP represents 55% of the coin’s 100 billion supply. This move is part of efforts to control the XRP supply and maintain a stable price. 

While Ripple programmed the escrow to release 1 billion XRP on the first day of each new month, the company still re-locks 80% of the released funds in escrow. Through this strategy, Ripple’s escrow reserve has drastically dropped to 38.9 billion XRP, representing 38.9% of the coin’s total supply. 

Experts Highlight Significance of Ripple Escrow Reduction 

Interestingly, famous legal expert Bill Morgan highlighted the importance of the reduction observed in Ripple’s escrow reserve. 

According to the lawyer, several arguments have been raised about the company’s escrow. First, Attorney Morgan said the SEC alleged in its lawsuit that Ripple leverages its escrow technique to boost the XRP price, suggesting that a reduction in XRP’s circulating supply might propel the asset for a major price surge.

Conversely, Morgan noted that some XRP enthusiasts wrongly claim that Ripple’s escrow reserve suppresses the coin’s price. Following the depletion of Ripple’s escrow reserve, Morgan asserted that the development highlights the company’s responsible stewardship of a large but steadily shrinking XRP holding.  

Meanwhile, an XRP community member, Tees CryptoSpot, advocated for the need to ‘reallocate’ Ripple’s escrow. The user suggested that once Ripple reallocates its escrow reserve, other entities would be interested in holding XRP, potentially reducing its selling pressure. 

With more entities holding XRP instead of selling, Tees expects the price of XRP to surge.  

In the meantime, XRP currently has a circulating supply of 56,868,662,755 (56.86 billion) coins, representing 56.87% of the total supply. The coin is trading at $0.5062, up 0.1% over the past 24 hours.