- Ripple released 1 billion XRP in June, triggering a brief 2% price dip.
- Only 330 million tokens entered the market, while the rest were re-locked.
- XRP remains stable long-term, despite short-term volatility around monthly releases.
In a move that has become routine for Ripple, the blockchain company released 1 billion XRP tokens from its escrow account this month. This scheduled release, which took place on June 1, 2025, is part of Ripple’s long-standing strategy to control the supply of XRP in the market. However, despite being expected, the release had a noticeable impact on the token’s price. Following the unlock, XRP saw a brief 2% drop, stirring discussions among traders and market analysts about how these regular actions affect investor sentiment.
Understanding Ripple’s Escrow System
To fully grasp the significance of this release, it’s important to understand how Ripple’s escrow system works. Back in 2017, Ripple locked 55 billion XRP in a series of escrow contracts to bring more transparency and predictability to the token’s supply. Each month, 1 billion XRP is automatically released. Ripple does not always sell or use all of the unlocked tokens—whatever is unused is typically returned to escrow to be released again in the future.
This system was created to reduce fears of sudden inflation in the XRP supply and to ensure long-term confidence in the token. While predictable, the monthly unlocks still have the potential to influence price movements, particularly when market sentiment is fragile or trading volume is low.
June’s Token Release and Market Reaction
On June 1, 2025, Ripple unlocked the standard 1 billion XRP from escrow. Not all of these tokens were released into the market, however. Reports indicate that only around 330 million XRP were actually put into circulation, with the remaining 670 million promptly re-locked. This partial release is a familiar pattern, but even this limited injection caused a ripple—no pun intended—in the market.
Shortly after the unlock, XRP’s price dropped by approximately 2%, bringing the value down to $2.19 from its previous trading level of $2.23. Although this dip is not dramatic by crypto standards, it’s enough to catch the attention of active traders and market watchers. Some analysts suggest that the psychological impact of the token release weighs more heavily than the actual amount being distributed.
Market Sentiment and Investor Concerns
While the price drop was relatively minor, it highlights how sensitive the crypto market can be to supply movements. Traders often respond quickly to news that may affect short-term liquidity, even if the overall fundamentals remain strong. In the case of XRP, the token has been performing steadily in 2025, but the monthly token unlocks continue to bring short-term volatility.
Investors new to XRP may view these drops as warning signs, while long-time holders understand that the escrow system is designed for the long haul. Ripple has repeatedly stated that these controlled releases are part of its broader mission to support the ecosystem and expand the use of XRP in cross-border payments.
Looking at the Bigger Picture
Despite the recurring price dips, XRP continues to hold a significant place in the global cryptocurrency landscape. Ripple’s technology is still being adopted by banks and financial institutions across various countries. The company’s efforts to drive real-world utility for XRP through partnerships and payment corridors have helped it maintain a loyal user base.
The short-term reaction to each monthly release should be seen in context. Ripple’s consistent practice of locking unused tokens back into escrow shows a degree of responsibility. It aims to balance growth and stability—a tough task in the high-speed world of digital finance. Over time, this approach has helped XRP avoid some of the wild price swings seen in other tokens with less structured supply systems.
What’s Next for XRP?
Looking ahead, it is likely that Ripple will continue with its current strategy unless market conditions force a change. The company has not indicated any plans to alter the release schedule or modify its escrow system. However, ongoing regulatory developments and market dynamics could influence how future releases are received.
For now, investors and analysts will be watching closely to see how XRP performs in the coming weeks. If the token manages to recover quickly from the recent dip, it may signal stronger confidence in Ripple’s long-term vision and ability to manage market expectations.
