The XRP community is buzzing with mixed feelings today, curiosity blended with caution, after Ripple’s Chief Technology Officer, David Schwartz, shed new light on the company’s massive XRP escrow holdings. While the token’s price remains stable, Schwartz’s remarks have reignited old debates about what counts as XRP’s actual circulating supply and how this could shape its long-term valuation.
Ripple’s Escrow Twist Raises New Questions
In a detailed X post, Schwartz, also known as “JoelKatz”, revealed that although the 35 billion XRP held in Ripple’s escrow cannot be circulated until their scheduled monthly releases, the company can sell or transfer the rights to those future tokens. This means Ripple could essentially sell the accounts that escrows will eventually release into, even if the coins themselves remain locked for now.
This new detail doesn’t change the technical restrictions of the escrow system but introduces a financial dimension many hadn’t considered. With XRP’s total supply capped at 100 billion, 65 billion already circulating and about 35 billion still in escrow across more than 14,000 contracts, the idea that Ripple can trade rights to those locked tokens adds complexity to how investors view its reserves.
A Fresh Take on Market Supply and Valuation
For years, XRP’s market cap calculations have excluded escrowed tokens, while Bitcoin’s include every mined coin, even those lost forever. This discrepancy often sparks debate about whether XRP’s market value appears smaller than it should be. Schwartz’s clarification now blurs those lines further. While the liquidity of XRP remains unchanged, Ripple’s ability to sell rights to escrowed tokens means those future coins could carry real value today.
This revelation could prompt data providers and analysts to rethink how they classify XRP’s “available” supply, possibly influencing how market participants compare it with other top cryptocurrencies.
Analysts Weigh In: Mixed Short-Term Views
Adding to the discussion, prominent analyst CoinsKid expressed renewed optimism about XRP’s price trajectory. He initially expected XRP to reach $4.13 in this cycle but now believes it could climb even higher after its recent pullback, reaffirming his long-term target of $27.
Meanwhile, Crypto analyst CasiTrades took a more cautious view, saying XRP remains in a ranging phase below the critical $2.82 resistance. He believes one final wave down could occur toward $1.35–$1.46 before a major bullish impulse potentially drives XRP up to $6.50 or even $10.
Together, their insights reflect today’s mood around XRP, uncertain but full of anticipation, as investors weigh Ripple’s escrow twist against hopes for a major breakout ahead.
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FAQs
XRP’s escrow locks 35 billion tokens across 14,000+ contracts for gradual release from a 100 billion total supply, with 65 billion circulating; it controls supply to stabilize markets and boost investor trust.
No, the tokens themselves remain locked, but Ripple can trade the rights to receive them later—meaning buyers get future access, which could value those reserves today without flooding the market.
Yes. The ability to sell escrow rights may affect investor sentiment and valuation models, influencing how analysts and traders price XRP long-term.
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