Bill Morgan said XRP locked in Ripple’s escrow accounts fell below 32.5% of total supply

Share of XRP in escrow declines

Morgan noted that nearly a year ago, escrow accounts constituted close to 36% of all XRP in circulation, but this share has been gradually decreasing over time. While Ripple unlocks 1 billion XRP from escrow every month, only a fraction is returned to escrow accounts. Naturally, this means the locked balance gets smaller as months pass.

Bill Morgan pointed out that the share of XRP held in escrow has now dipped under 32.5%, yet some market watchers continue to cite outdated figures of 35% or even 40%.

Morgan explained that, on average, around 300 million XRP released each month are not relocked in escrow. These tokens, instead, are deployed in institutional partnerships, liquidity services, and ecosystem development. This use case has steadily reduced the share Ripple holds in escrow accounts over time.

Mini glossary: An escrow account refers to token balances locked under a predetermined schedule and released over time. Ripple uses this system to plan the future supply of XRP entering the market.

Challenge to outdated supply data

Despite blockchain data being publicly available, Morgan expressed concern that outdated supply statistics continue to circulate. He especially called out some Bitcoin supporters who still claim Ripple controls more than half of all XRP, dismissing these assertions as inaccurate in light of current numbers.

Should current trends persist, Morgan estimates that by July next year, the share of XRP in escrow accounts could fall below 29% of total supply. This would mean Ripple’s locked token holdings will exert even less influence on overall XRP liquidity.

The fact that Ripple relocks most of the 1 billion XRP released each month into escrow restricts the net amount entering the market, which helps allay concerns over potential sell pressure.

Market sees limited price impact

Morgan’s latest remarks came just after Ripple completed its planned release of 1 billion XRP for July. While such monthly unlocks often raise concerns about possible sell pressure, Ripple’s history shows that most released tokens are relocked rather than sold, mitigating market anxiety.

The most recent event did not trigger a significant negative market reaction. XRP’s price climbed between 3% and 4% to break past $1.10, ultimately reaching $1.12. Persistent demand at higher price levels increased confidence that the $1.10 region may now act as a key support, rather than resistance.

These disclosures have reignited debate around XRP’s tokenomics. Supporters see the dwindling escrow balance as a sign of a more market-oriented and dispersed supply structure, which they argue leads to healthier asset distribution over time.