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Ripple Shifts XRP Escrow Strategy: 400M Locked Back, Breaking 1B Monthly Unlock Tradition

Ripple Shifts XRP Escrow Strategy: 400M Locked Back, Breaking 1B Monthly Unlock Tradition

Author:
XRP News
Published:
2025-07-09 12:45:28
9
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[TRADE_PLUGIN]XRPUSDT,XRPUSDT[/TRADE_PLUGIN]

In a notable departure from its established pattern, Ripple has locked 400 million XRP (valued at ~$869M) back into escrow after releasing 500 million tokens—deviating from its routine 1 billion XRP monthly unlock practice maintained since 2017. The March-initiated shift, coupled with a failed 300M XRP release attempt, signals evolving token management tactics. This strategic pivot could influence XRP's liquidity dynamics and market perception as Ripple adapts to regulatory and operational landscapes.

Ripple Deviates From 1 Billion XRP Monthly Unlock Pattern With 400M Escrow

Ripple has locked 400 million XRP, worth approximately $869 million, back into escrow after releasing 500 million tokens. This marks a significant shift from the company's traditional monthly unlock pattern of 1 billion XRP, a routine maintained since 2017. The change, first observed in March, suggests a new approach to token management.

A failed attempt to release an additional 300 million XRP was detected, hinting at further adjustments to Ripple's strategy. Blockchain analysts speculate the 300 million XRP transfer was intended for on-demand liquidity services, exchange-traded products, and strategic partnerships.

The modified escrow management pattern has become recurring, with Ripple executing internal transfers and creating new escrow arrangements from existing holdings rather than full unlocks. This evolving strategy reflects broader changes in how Ripple handles token distribution and liquidity provision.

Ripple CEO to Testify as XRP Price Volatility and Regulatory Uncertainty Loom

XRP surged to $2.35 before retracing as market participants await Ripple CEO Brad Garlinghouse's Senate testimony on July 9. The hearing, titled 'From Wall Street to Web3,' could determine whether digital assets like XRP fall under SEC or CFTC jurisdiction.

Technical analysts note XRP has formed a bullish inverse head-and-shoulders pattern, suggesting potential for a 12% breakout. This comes despite recent court rejection of a Ripple-SEC settlement and ongoing regulatory ambiguity.

Garlinghouse will advocate for clear crypto market structure legislation alongside industry leaders from Blockchain Association, Chainalysis, and Paradigm. The outcome may set precedent for how regulators classify altcoins moving forward.

XRP’s Price Rally Could Trigger Massive Short Squeeze, Analyst Warns

XRP's bullish momentum is setting the stage for a potential short squeeze, with analyst STEPH IS crypto highlighting over $128 million in vulnerable short positions. The token's current price of $2.33 threatens to liquidate these bets if it breaches the $2.35 resistance level.

Market dynamics could amplify upward pressure as short sellers scramble to cover positions. Such a scenario risks transforming a routine rally into a cascading liquidation event, injecting volatility into XRP trading.

Ripple CEO Brad Garlinghouse Set To Testify Before US Senate on Digital Asset Regulation

Ripple CEO Brad Garlinghouse will appear before the US Senate Banking Committee on July 9, 2025, to discuss the future of digital asset markets. The hearing, titled "From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets," will focus on cryptocurrency regulation, including proposed legislation like the GENIUS Act and CLARITY Act.

Garlinghouse will be joined by industry leaders such as Blockchain Association CEO Summer Mersinger and Chainalysis CEO Jonathan Levin. The session, overseen by Senators Tim Scott, Cynthia Lummis, and Ruben Gallego, comes amid Ripple's ongoing legal battles, including a 2023 court ruling that XRP is not a security.

"Clear regulatory frameworks are essential for innovation and consumer protection," Garlinghouse stated, emphasizing the need for constructive legislation to foster growth in the crypto sector.

Ripple Price Forecast: XRP Eyes 18% Breakout Amid US Tariff Uncertainty

XRP bulls demonstrate resilience despite macroeconomic headwinds from evolving US tariff policies. The token shows technical promise with a potential inverse head-and-shoulders pattern formation, suggesting an 18% upside breakout.

Futures market activity reflects growing risk appetite, with XRP Open Interest climbing to $4.93 billion. The token gained 1% Tuesday, stabilizing NEAR $2.28 as traders monitor tariff developments that could impact all risk assets.

Market participants brace for potential volatility as Trump-era tariff pauses expire this week. New trade letters propose 25-40% rates on key Asian economies, with Japan and South Korea facing particular exposure. "Markets currently price in delay tactics," analysts note, "but implementation WOULD create material growth obstacles."

Crypto’s Biggest Ecosystems Scale with Cosmos at Sovereign EVM Day

Cosmos has solidified its position as the backbone of sovereign, interoperable blockchain infrastructure following breakthroughs showcased at Sovereign EVM Day. The June 30 event in Cannes featured 18+ ecosystem teams, including Ripple, TAC, and Interchain Labs, demonstrating advancements in EVM compatibility and cross-chain DeFi.

Ripple unveiled EVM-compatible sidechains built on Cosmos Stack, now powering XRP's native DeFi layer. TAC previewed its Telegram/TON EVM chain poised to onboard Telegram's billion users, while Stride revealed an IBC-powered DEX for cross-chain liquidity. The Cosmos EVM launch emerged as a game-changer—the market's only fully integrated EVM Layer 1 stack, already adopted by Ripple, TAC, and Babylon.

Interchain Labs' leadership outlined Cosmos' growth roadmap, emphasizing developer sovereignty down to core chain logic. The ecosystem now enables both LAYER 1 chains and dApps to launch tailored, interoperable infrastructure—a critical evolution as Starknet, Polygon, and other major protocols expand their Cosmos integrations.

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