XRP is back in the headlines this week—not just for its price action, but for deeper questions about its long-term role in the financial system. With Ripple’s company valuation surging, escrow strategies reinforcing token stability, and institutional usage still lagging, the XRP narrative is more layered than ever.
Ripple Unlocks Escrowed XRP—But It’s Not What You Think
For the first time since 2018, Ripple withdrew the full 1 billion XRP from its monthly escrow release, raising eyebrows across the crypto community. Historically, Ripple releases up to 1 billion XRP per month, but only uses a portion and locks the rest back into escrow. This month, however, none of the XRP was immediately returned, sparking speculation of a strategic shift.
Some believe this could foreshadow a significant price move, given Ripple’s track record of aligning such events with institutional partnerships, legal milestones, or market plays. Others caution it could be routine liquidity management or operational funding.
Regardless, XRP’s price appears to have found support in recent days, with many traders watching closely for breakout potential if trading volume and sentiment align.
Source: Nasdaq
Ripple’s Escrow Strategy: A Stability Tool in Disguise
The move also casts a spotlight on Ripple’s longstanding escrow mechanism, which has been misunderstood by casual investors for years. Rather than flooding the market, Ripple’s escrow is intended to mitigate inflation, create predictability, and ensure controlled token distribution.
According to a new breakdown from OneSafe, this monthly mechanism provides Ripple the flexibility to support strategic growth initiatives while preserving investor trust.
“The escrow system gives XRP a unique edge—it’s one of the few cryptos with a long-term stability mechanism baked into its distribution model,” the article notes.
Despite past criticism about Ripple’s control over XRP supply, the system has actually helped reduce volatility during critical periods, allowing Ripple to manage sell pressure in alignment with ecosystem needs.
Source: OneSafe.io
Why Aren’t More Banks Using XRP? Ripple Co-Founder Weighs In
With all this development and Ripple’s ballooning valuation (now estimated at $11 billion), the lingering question remains: Why isn’t XRP being used more widely by banks?
Ripple co-founder Chris Larsen recently addressed this in an interview, explaining that most financial institutions prefer RippleNet’s fiat-to-fiat infrastructure over XRP-based settlement (known as On-Demand Liquidity or ODL). The reason? Risk aversion, regulatory uncertainty, and entrenched banking habits.
“Banks are slow to change,” Larsen admitted, adding that Ripple is playing a long game, believing XRP will eventually be adopted more broadly as regulations clarify and the benefits become undeniable.
The admission underscores Ripple’s pivot from short-term hype to long-term infrastructure development, betting on compliance, partnerships, and gradual adoption over flashy adoption metrics.
Source: Protos
XRP Price Recovers on Ripple’s Rising Valuation
Meanwhile, XRP is enjoying a modest rebound in price, spurred by positive investor sentiment around Ripple’s rising valuation and possible IPO rumors. With Ripple securing major partnerships and legal clarity in the U.S. post-SEC ruling, confidence in XRP’s future has been cautiously restored.
As of this writing, XRP is trading around $0.61, with analysts highlighting $0.64 as a critical resistance zone, and $0.57 as short-term support. Market watchers suggest a clean break above resistance could trigger a new wave of momentum.
Conclusion
Ripple and XRP are navigating a critical chapter in their story. While Ripple continues to grow its enterprise footprint and stabilize XRP’s supply through its escrow strategy, the token still faces questions about adoption, utility, and regulatory readiness. Yet, with renewed price movement and clearer strategic direction, XRP’s long game appears to be unfolding—one calculated move at a time.
