Ripple Escrow Timing May Cause Stronger XRP Price Moves Says Jake Claver

TLDR

Table of Contents

XRP escrow releases occur only on the first day of each month with no emergency unlocks.
Ripple cannot release extra XRP even during sudden demand surges.
Locked supply makes XRP more reactive to market demand, says Jake Claver.
Ripple can sell its rights to future XRP but not release it early.

Ripple’s XRP escrow system, designed to control the token’s supply, is now being linked to sharper price movements during market shifts. Digital asset investor Jake Claver explains that the fixed monthly release schedule limits flexibility, making XRP more vulnerable to price spikes when demand increases. With no option for emergency releases, this setup may intensify volatility, especially during periods of rapid institutional adoption or sudden market sentiment changes.

Fixed Schedule Controls XRP Circulation

Jake Claver, a digital asset specialist, has stated that Ripple’s escrow model increases XRP’s price reaction to sudden demand changes. According to Claver’s post on X, Ripple can only release XRP held in escrow on the first of each month. This rule creates a time-lock that prevents the company from accessing additional XRP at any other time.

Ripple uses this structured release model to avoid flooding the market with XRP. Claver noted, “There are no emergency releases possible,” even if demand for the token rises unexpectedly. This control prevents sudden drops in price caused by oversupply. However, it also limits the flexibility to increase liquidity during high demand periods.

Ripple’s January XRP escrow unlock isn’t breaking news – and it isn’t a shock.
It’s a supply framework designed back in 2017 to make issuance predictable, not chaotic.
What actually happens:
➖ 1B XRP unlocks
➖ Most gets re-escrowed (as it has for years)
➖ A smaller portion… pic.twitter.com/ERonhTwlPd
— CryptoSensei (@Crypt0Senseii) December 27, 2025

This structure has existed for several years and is designed to support XRP’s long-term stability. Each month, up to 1 billion XRP may be released, but unused tokens return to escrow. This system reduces uncertainty but can create short-term price sensitivity.

Price Surges May Be More Severe

Claver explained that XRP’s limited supply flexibility causes prices to rise more sharply during demand spikes. Since additional XRP cannot be added immediately, rising demand can push prices up quickly. This may create sharper short-term price movements compared to assets with more flexible supply systems.

He pointed out that other blockchains may adjust their token supply to meet market conditions, but Ripple’s structure prevents such actions. This means that XRP’s market price reacts directly to trading activity and investor sentiment, without interference from sudden supply increases.

Ripple has long said this system supports transparency and trust. However, Claver argues that while the approach avoids surprise supply shocks, it also amplifies price changes when demand shifts rapidly.

Escrow Predictability Keeps Traders Watchful

Investor interest in XRP often intensifies ahead of the monthly escrow unlock. Because the release date is fixed, traders watch closely for price movement around this period. Each release is triggered by a ledger transaction, not automatically, which may cause confusion about the actual timing.

Ripple CTO David Schwartz confirmed this process and clarified that the unlocks follow a fixed pattern. The unlock itself only occurs once a transaction is submitted, which can show different timestamps. This has led to past speculation about unscheduled releases, which Schwartz refuted in August 2025.

The predictability of the releases gives investors a chance to plan their trading strategies. However, it also means that price activity can increase near the start of each month, when new XRP becomes available.

Ripple May Sell Rights to Future XRP

In October 2025, Schwartz disclosed another detail that surprised some in the XRP community. He said Ripple has the option to sell its rights to future XRP held in escrow, even before it is released. This does not change the circulating supply, but it allows Ripple to transfer the claim to the tokens to another party.

This approach allows Ripple to raise funds or complete deals using escrowed assets without violating the time-lock rules. It adds flexibility on the financial side while keeping supply release under control.

As of December 30, 2025, XRP trades at $1.87, showing a modest 0.24% rise in the last 24 hours. The next escrow release is scheduled for January 1, 2026. Market participants remain attentive as the event approaches.