Ripple Executes Scheduled Billion-XRP Unlock Amid Market Downturn
Ripple executed its scheduled monthly release of 1 billion XRP from escrow on February 1, a move that comes as the digital asset extends its January losses into the new month amid a widespread market correction.
The unlock, which follows a roughly 10% decline in XRP's value throughout January, was conducted in four separate transactions totaling approximately $1.6 billion at the time of transfer. Market observers noted the activity aligns with Ripple's long-established supply management framework, initiated in 2017, which placed 55 billion XRP in escrow to allow controlled, transparent monthly releases.
Data from blockchain tracker Whale Alert shows Ripple subsequently returned 700 million XRP to new escrow contracts, leaving a net 300 million XRP unlocked—likely earmarked for operational expenses or liquidity provisions. This pattern of releasing and partially relocking tokens has become routine, historically exerting limited immediate pressure on markets.
Nevertheless, XRP has faced sustained selling pressure as risk appetite across cryptocurrency markets dwindles. According to BeInCrypto Markets data, XRP fell 10.6% in January, touching a low of $1.50 on the month's final trading day—its weakest level since last October's market crash. The downtrend has persisted into February, with the token dropping over 6% in the first two days of the month, mirroring declines in Bitcoin and Ethereum. At press time, XRP traded near $1.57, down nearly 5% over the past 24 hours.
Analysts remain divided on the token's near-term trajectory. Some point to XRP's historical tendency to undergo prolonged consolidation phases before sharp breakouts, suggesting the next major rally could be years away. Others interpret the current price action as a "re-accumulation phase" that may precede a higher-timeframe upward move.
Adding a note of caution, David Schwartz, a chief architect of the XRP Ledger, recently challenged overly optimistic price projections circulating in some community forums. Schwartz argued that if rational investors genuinely believed XRP had a significant chance of reaching prices like $100 within a few years, they would aggressively accumulate at current levels, quickly absorbing available supply—a dynamic not presently observed.
Market Reactions:
Marcus Chen, Crypto Strategist at Horizon Insights: "This unlock was entirely expected and structured. The real story is the broader macro sentiment dragging down all digital assets. XRP's price action reflects sector-wide risk-off flows, not Ripple's treasury management."
Elara Vance, Independent Trader: "It's frustrating to watch the same cycle repeat. The escrow releases are predictable, but the constant sell-pressure from a market that's lost its nerve is exhausting for holders. We're being punished for macroeconomic factors beyond crypto's control."
Professor Aris Thorne, Financial Technology Researcher: "Schwartz's comments are a sobering counterweight to the hype. Market prices aggregate informed expectations better than social media dreams. If the crowd truly believed in those triple-digit targets, we wouldn't be trading at these levels."
Riley Park, Retail Investor: "This feels like deliberate suppression. Billions unlocked while prices are down? It's a terrible look and undermines confidence. The 'predictable schedule' argument doesn't comfort anyone watching their portfolio bleed."