Expert Explains Why XRP Escrow is Not Bad for Price: “It’s Starving the Market”

An XRP community pundit has suggested that the Ripple escrow system does not harm the XRP price, arguing that it starves the market of more tokens. With Ripple holding billions of XRP, some have argued that this creates a centralized system, raising fears about potential price suppression.  Critics such as Bitcoin maximalists claim Ripple's monthly escrow releases act as token dumps, introducing supply pressure. Notably, even some within the XRP community believe these monthly releases are suppressing price growth. Ripple Escrow Not Flooding the Market However, one XRP-focused analyst has presented a different take, recently arguing that Ripple is not flooding the market but actually holding tokens back, and that could lead to a major price surge down the road. The analyst, known for running the "All Things XRP" community-driven account, believes many people misunderstand XRP's escrow system. He pointed out that XRP has a fixed supply of 100 billion tokens. Over 56 billion are already in the market, while the rest remain locked in escrow. For context, back in 2017, Ripple locked 55 billion XRP in escrow to avoid trust issues and address fears about oversupply. The analyst said this move was not about hiding tokens but about making the supply predictable.  Every month, Ripple unlocks 1 billion XRP, but they rarely use all of it. Instead, they return the unused portion to escrow, pushing the timeline forward. According to him, this method does not overwhelm the market. Instead, it helps manage the supply more carefully. He highlighted that the company only uses about 200 to 300 million XRP each month. Specifically, they leverage these tokens to support market makers, run their payment service, and help grow the XRP ecosystem. The rest goes right back into escrow. He called this smart supply control, not dumping, as many believe. https://twitter.com/XRP_investing/status/1923714181792137349 Escrow Essentially "Starving" the XRP Market At the time of the commentary, Ripple holds about 36.5 billion XRP in escrow, down from the original 55 billion. The analyst said this steady release shows discipline and transparency.  He pushed back on the idea that escrow hurts the price. Instead, he believes it helps keep things stable. As the escrow shrinks and demand for XRP grows, especially with use cases like ODL and the possible introduction of ETFs, he said the slow supply could fall behind rising demand. If that happens, it could create a supply squeeze that drives the price higher. In addition, he also addressed fears about centralization. While Ripple still owns around 46% of XRP's total supply, he said the escrow system puts limits on the company's control. Every unlock is tracked on-chain and available to the public, which adds trust and accountability. Community Suggestions Meanwhile, some XRP supporters have floated ideas for how Ripple could completely address the escrow dilemma. They have suggested unlocking more tokens to reward ecosystem projects or even burning the entire escrowed supply to create scarcity.  However, David Schwartz, Ripple's Chief Technology Officer, has pushed back on those ideas. He pointed to a case from 2019 when the Stellar Development Foundation burned half of XLM's supply, about 55 billion tokens.  Despite the move, Stellar's price didn't rise. He argued that a similar XRP burn wouldn't move the needle either and would just waste valuable resources. Essentially, the analyst behind "All Things XRP" sees the escrow as a smart way to manage supply, not a problem for price. He believes that if demand picks up while Ripple continues limiting supply, XRP could face a major price breakout once the escrow runs dry.