Ripple Executes $1.63 Billion XRP Unlock, Sparking Market Scrutiny Over Price Impact
In a move closely watched by the cryptocurrency community, Ripple executed a scheduled unlock of 1 billion XRP tokens on February 2, with a total valuation hovering around $1.63 billion at the time of release. Blockchain data from XRPScan reveals that 300 million of these tokens, worth roughly half a billion dollars, were transferred to the company's primary treasury account, designated for operational use, including potential sales, throughout February.
The unlocked funds originated from escrow contracts established in 2022, which themselves stem from XRP's initial distribution. The February 2026 release was processed from two primary wallets, labeled Ripple (9) and Ripple (28), following the completion of four separate escrow contracts on February 1.
Following a now-familiar pattern, the unlocked tokens were swiftly reallocated. A significant portion—500 million XRP from the Ripple (28) wallet—was moved to new escrow accounts set to mature in December 2026. Meanwhile, from the Ripple (9) wallet, 300 million XRP were sent to Ripple (1), the company's known liquid treasury used for over-the-counter sales and exchange funding.
This substantial release occurs against a challenging market backdrop. XRP's price has declined approximately 18% over the past month, trading around $1.63, mirroring a wider sell-off across digital assets. Recent data indicates net outflows of $1.7 billion from crypto investment products in just one week, pressuring asset prices.
With a circulating supply of about 60 billion tokens, the newly unlocked XRP constitutes roughly 1.66% of the total. The 300 million tokens reserved for monthly operations represent 0.5% of the active supply. XRP currently holds the position of the fifth-largest cryptocurrency by market cap, which stands near $100 billion.
Analysts note that Ripple's structured escrow system is designed to provide predictable supply releases, but the market's ability to absorb this liquidity during a downturn remains a key concern. The company continues to expand its regulatory footprint, recently securing a full Electronic Money Institution (EMI) license in Luxembourg, a development that may bolster long-term institutional confidence.
Michael Torres, Crypto Portfolio Manager: "This is a non-event for long-term holders. The escrow mechanics are transparent and planned years in advance. The real price driver will be adoption and regulatory clarity, not these scheduled treasury operations."
Lisa Chen, Decentralization Advocate: "It's a stark reminder of the centralized supply control. A single entity can drip-feed nearly $2 billion worth of tokens into the market monthly. How is this different from a central bank printing money? It completely undermines the 'decentralized' narrative for XRP."
David Park, Market Analyst at FinTech Insights: "The timing is unfortunate given the macro headwinds. While only a fraction is for immediate use, the psychological effect on retail investors seeing '1 billion unlocked' can exacerbate selling pressure in the short term."
Sarah Wilkinson, Blockchain Compliance Specialist: "Ripple's Luxembourg EMI license is the more significant news. It allows them to operate across the EU with a regulated framework. This institutional progress could eventually outweigh the monthly noise from escrow releases."