Ripple unlocks a billion XRP as price climbs

Ripple released 1 billion XRP (about $1.38 billion) from its escrow on September 1, 2026, reducing the locked supply to 31.28 billion tokens. Despite the large release, XRP’s price continued to rise, ending August up 28.5% – its strongest August since 2021 – and trading around $1.42 in early September.

Escrow mechanics and market impact

The escrow program, started in December 2017, unlocks up to 1 billion XRP each month. Ripple typically re‑escrows 700‑900 million of the released tokens, leaving only 100‑300 million for operational use, OTC liquidity, or institutional payments. Historical data shows monthly releases cause modest price swings (average –3.1% to +1.7% over 7 days) and volume bumps of 15‑22% over 30 days, far milder than typical equity lock‑up expiries.

August rally drivers

• Price moved from ~ $1.10 at the start of August to a peak of $1.70, a 28.5% gain.
• Spot XRP ETFs, approved in March 2026, attracted $153.55 million in August, with $150.28 million arriving in the final two weeks.
• Payment volume on the XRP Ledger surged 521% in a single week, driven by larger institutional‑scale transfers rather than retail activity.
• Active addresses hit an all‑time high of 2.26 million in August.

On‑chain activity highlights

• Daily payment volume peaked at roughly 488.4 million XRP on August 26, reflecting larger transaction sizes.
• Total value locked on the XRP Ledger rose from $32.31 million in July to $44.42 million in August.
• Ripple’s stablecoin RLUSD reached a market cap of $2.32 billion, becoming the dominant stablecoin on the XRPL and gaining presence on Ethereum.

Regulatory backdrop

The SEC‑Ripple legal battle concluded in August 2025, with a settlement that affirmed XRP sold on public exchanges is not a security. This regulatory clarity has facilitated institutional participation, including deals with major banks and the launch of spot ETFs.

Outlook

Historically, XRP’s September performance often moves opposite to August, but the recent structural changes – institutional inflows, ETF creation, and regulatory certainty – could alter that pattern. Market participants will watch upcoming Fed policy announcements and continued institutional adoption for further price direction.