Ripple kicked off the new year by preparing its first XRP token release of 2025, reserving 300 million XRP from its monthly 1 billion token unlock. This move continues a longstanding pattern rooted in XRP’s genesis distribution, which allocated 80% of its supply to Ripple.
In December 2024, Ripple finalized its last token sale of the year, following significant sales in November (470 million XRP) and December (200 million XRP). For January 2025, the company transferred 300 million tokens to the ‘Ripple (1)’ account from the ‘Ripple (24)’ escrow account, which unlocked 500 million XRP this month, according to XRP Scan.
Remaining XRP Tokens and Escrow Management
Ripple re-locked 200 million of the unlocked tokens into a new escrow under the ‘Ripple (12)’ account. Additionally, a separate 500 million XRP escrow under the ‘Ripple (25)’ account was finalized and re-locked into the ‘Ripple (13)’ account. This month’s operations mark the last escrow activities involving the ‘Ripple (24)’ and ‘Ripple (25)’ accounts.
The 700 million XRP re-locked in January is set to reach finality by March 2028, aligning with Ripple's ongoing strategy of managing token supply through scheduled escrows.
Ripple’s Token Sales in 2024
Ripple sold 3.22 billion XRP through the ‘Ripple (1)’ account in 2024, with reports suggesting additional sales from alternative accounts. At the current XRP price of $2.33, these accounted sales amount to $7.50 billion, although much of the selling occurred when XRP traded near $0.50.
Ripple’s Market Impact
Ripple’s token releases significantly impact the cryptocurrency market due to their scale. For perspective, the Ethereum Foundation’s annual ETH sales amount to $100 million—substantially lower than Ripple’s XRP sales—despite Ethereum’s market cap being three times larger.
Ripple has disclosed that its XRP sales operate through an On-Demand Liquidity (ODL) model, selling tokens at market prices to meet customer demand. However, this approach still requires consistent demand to balance the increased circulating supply.
Implications for XRP Investors
Ripple’s regular token unlocks and sales dilute XRP’s circulating supply, potentially impacting investor holdings. Monitoring Ripple’s escrow and transaction activity allows investors to anticipate upcoming sales and their effects on market dynamics. As Ripple continues its selling pattern, market participants will need to gauge whether demand can keep pace with the increased supply.
