1 Billion XRP Unlocked: Reviewing the Impact on XRP Price

Ripple has unlocked another massive batch of XRP, continuing its predictable monthly release cycle.

On December 1, Whale Alert tracked the movement of 1 billion XRP from Ripple’s escrow account.

This routine unlock always attracts attention because of the size of the token release and the potential effect on market stability.

While most of the XRP does not immediately enter circulation, traders still watch these movements closely, especially during periods when the market is already moving sharply.

Today we explore what happened, how much XRP actually stayed in the market, and whether the release changed XRP’s price direction.

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Key Takeaways

• Ripple released 1 billion XRP from escrow, but locked 70% back into long term storage shortly after.

• XRP price dipped before the unlock but recovered strongly, climbing back to around $2.13.

• Market reaction was influenced more by regulatory progress and ETF inflows than the unlock itself.

Ripple’s Latest Unlock and How the Escrow System Works

Ripple follows a long standing schedule where 1 billion XRP leaves escrow at the start of every month. This time was no different.

Whale Alert flagged the movement of 500 million XRP at a time, totaling 1 billion tokens worth over $1 billion.

Even though the unlock is large, Ripple does not release the entire amount into active circulation.

How the Tokens Were Distributed

Ripple returned 700 million XRP to escrow within two minutes of the initial movement. This leaves 300 million XRP available for liquidity, ecosystem needs, and institutional allocations.

This portion does not necessarily flood the market immediately, as unused tokens are often returned to escrow later.

Here is a simple breakdown for clarity:

• Total unlocked: 1 billion XRP

• Re-locked into escrow: 700 million XRP

• Available for use: 300 million XRP

Ripple expects its escrow reserves to run out by 2035, assuming this schedule continues. This predictability helps traders anticipate supply changes, which is why most monthly unlocks create little price drama.

Read Also: About TOXR, XRP ETF Fund from 21Shares: All You Should Know

XRP Price Action After the Unlock

Even though Ripple’s monthly unlocks usually have a neutral effect on the market, this round arrived during a shaky moment for the entire crypto landscape.

XRP dropped below $2 as Bitcoin briefly fell under $84,000, which created some tension among traders. Still, the fear did not last long.

XRP’s Recovery and What Drove It

XRP bounced back quickly, gaining nearly 7% in a single day and moving toward $2.13. Several factors played a role in the recovery:

• Regulatory clarity in Singapore after Ripple updated its Major Payment Institution license

• Strong institutional appetite shown by U.S. spot XRP ETF inflows

• Optimism around Grayscale’s upcoming XRP ETF decision

• Momentum from RLUSD related custody discussions

These developments carried enough influence to overshadow concerns around the unlock. Historically, XRP traders treat the unlocks as expected events, so market sentiment tends to be shaped more by external news.

Read Also: Can You Mine XRP? Learn All About XRP Mining

Why This XRP Unlock Matters for the Long Term

Monthly unlocks often spark debates about supply pressure, but the structured pattern reduces unpredictability.

This latest release shows Ripple’s strategy of returning most tokens to escrow continues to support long term stability.

Key Points for Long Term Holders

• XRP unlocks do not always create downward pressure.

• The percentage re-locked is more important than the total unlock amount.

• Market direction depends far more on regulatory updates and ETF activity.

Looking ahead, institutional interest remains one of the strongest drivers of the XRP movement. The growing list of payment partnerships and the continued expansion of Ripple services in licensed regions add even more confidence to the asset’s use case.

Read Also: Is It Too Late to Buy XRP in 2025? What Price Action and Market Outlook Say

Conclusion

Ripple’s unlock of 1 billion XRP is part of a cycle that traders have learned to expect. With 700 million XRP returned to escrow and only 300 million set aside for ecosystem use, the release did not create unusual pressure on the market.

Instead, XRP’s price direction followed larger market events, especially the renewed strength in Bitcoin and fresh regulatory gains for Ripple.

As institutional demand grows, XRP shows that predictable supply movements often fade into the background.

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FAQ

Does an XRP unlock always affect price?

Not always. Most large movements are already priced in since the schedule repeats every month.

How much XRP returned to escrow this time?

Ripple re-locked 700 million XRP out of the 1 billion that was released.

Why does Ripple unlock XRP monthly?

It follows a long term plan to release liquidity gradually without creating unexpected supply shocks.

Did the latest unlock cause the price to fall?

The brief drop was linked to the broader crypto dip, not the unlock itself.

When will Ripple’s escrow run out?

At the current rate, it is expected to last until around 2035.

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