Ripple Labs, the company behind the XRP token, has locked around 400 million XRP into escrow, worth approximately $876 million at current prices, according to blockchain tracker Whale Alert. This move follows the unlocking of 500 million XRP earlier in July—an action that was split into two separate transfers to company-controlled wallets. The pattern reflects a broader, unusual trend in Ripple’s escrow behavior, suggesting possible changes to its long-standing release strategy.
Ripple’s Escrow Process Sees Strategic Shift
For nearly eight years, Ripple Labs maintained a predictable system, releasing 1 billion XRP from escrow each month to manage the token supply. However, this pattern changed at the start of 2025. Rather than directly unlocking tokens as before, Ripple began conducting internal movements of XRP before executing actual escrow releases. This marks a notable shift in the company’s approach to managing its digital assets.
In March, Ripple deviated further from tradition by establishing a new escrow using its existing XRP reserves instead of the freshly unlocked tokens—an unusual move that has since been repeated in subsequent months. Most recently, in July, Ripple unlocked 500 million XRP and transferred the assets to company wallets in two separate batches of 300 million and 200 million tokens. These irregular activities suggest a potential change in Ripple’s broader strategy.
Ripple’s 300M XRP Move Raises Questions
The recent 300 million XRP transfer is likely being set aside for Ripple’s On-Demand Liquidity (ODL) service, exchange-traded products, or potential future partnerships. What’s more, another 300 million XRP unlock attempt was detected on the blockchain in the early hours of July 2. Although that transaction didn’t appear to succeed, it adds to the growing uncertainty around Ripple’s updated escrow process, which seems to be shifting away from its once-clear structure.
XRPL EVM Sidechain Launches
The XRP Ledger (XRPL) has officially launched its Ethereum Virtual Machine (EVM)-compatible sidechain on mainnet, marking a major advancement for the network. Built in collaboration with Ripple, Peersyst, and Axelar, the new sidechain brings full Ethereum smart contract support to the XRPL ecosystem for the first time. This upgrade allows developers to deploy decentralized applications (dApps) and protocols using Ethereum-compatible tools, while benefiting from XRPL’s performance and efficiency.
The news sparked initial excitement in the market, with XRP’s price briefly rising to around $2.20 following the announcement. However, the momentum quickly cooled, and the token has since experienced a slight pullback. Still, the successful launch of the EVM sidechain is seen as a key step in expanding XRPL’s utility and attracting more developers to the ecosystem.
XRP Holds at $2.18 Amid Mixed Signals
Following the launch of the XRPL EVM sidechain and Ripple’s latest escrow movements, XRP was trading at $2.18 on July 2. While the EVM integration initially sparked optimism and a brief price uptick, the excitement has since cooled. At the same time, Ripple’s unusual escrow activity—such as splitting the 500 million XRP unlock and attempting another 300 million unlock—has introduced uncertainty that may be weighing on investor sentiment, keeping price movements relatively subdued despite major technical progress.
Final Thoughts
Ripple is making big changes, both in how it manages XRP and how it expands the network’s features. The launch of the EVM sidechain introduces additional tools for developers and could enhance long-term growth. However, Ripple’s recent unusual moves with escrow—such as splitting up token releases and failed unlock attempts — have created some uncertainty. With XRP priced at $2.18 on July 2, the market seems unsure, balancing excitement about new technology with questions about Ripple’s next steps.
