The ongoing debate around Ripple’s periodic sale of XRP has stirred speculation within the cryptocurrency community. Many investors have long questioned whether these sales—despite being part of a structured financial strategy—exert downward pressure on XRP’s market price. However, expert analysis now suggests that the impact is far less significant than commonly believed.
Mickle, a well-known American wealth advisor and crypto analyst, recently addressed widespread misconceptions about Ripple's monthly XRP releases from escrow. According to Mickle, while the narrative of price suppression persists, data and market dynamics tell a different story—one where Ripple’s actions play a minimal role in shaping XRP’s valuation.
How Ripple Manages XRP Escrow Releases
Ripple holds a substantial portion of the total XRP supply, and each month, 1 billion XRP are released from its escrow accounts. Of this amount, approximately 800 million XRP are re-locked into escrow for future use, while the remaining 200 million are made available for strategic disposal.
These funds are used to support Ripple’s operational costs, including product development, partnerships, and global expansion. The company follows a transparent and predictable release schedule designed to prevent market shocks. Importantly, Ripple does not dump large volumes of XRP onto exchanges all at once.
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Instead, sales are conducted gradually and discreetly through over-the-counter (OTC) channels and private placements. This method ensures minimal slippage and avoids triggering panic or volatility in open markets.
Community Perception: Do Ripple Sales Suppress XRP Price?
Despite Ripple’s measured approach, skepticism remains strong among retail investors. A poll conducted earlier this year by Good Morning Crypto on X (formerly Twitter) revealed that 67.7% of 1,964 respondents believed Ripple’s periodic sales suppress the price of XRP.
This perception is understandable—seeing a major holder regularly releasing tokens can naturally raise concerns about supply inflation and downward price pressure. However, perception doesn’t always align with reality.
Market psychology often amplifies fears during bearish trends, leading investors to attribute price stagnation or declines to internal factors like corporate token sales—rather than broader macroeconomic forces or sector-wide sentiment shifts.
Expert Analysis: Ripple Sales Have Minimal Market Impact
Mickle strongly disputes the idea that Ripple’s sales meaningfully affect XRP pricing. In a detailed thread published in July 2024, the expert outlined several key reasons why:
“Ripple's XRP sales are conducted in a controlled manner, ensuring they do not flood the market. The sales represent only a small fraction of daily trading volume, minimizing any potential impact.”
Indeed, data supports this claim. On average, XRP records **over $3 billion in daily trading volume**, with peaks exceeding $5 billion during periods of high volatility. In comparison, Ripple’s monthly release of 200 million XRP—valued at roughly $100–$120 million depending on price—is spread out over weeks or even months.
When broken down into daily equivalents, Ripple’s influence on supply becomes negligible relative to overall market activity.
Moreover, Mickle emphasizes that the buyers of these OTC transactions are typically institutional clients and strategic partners—entities interested in long-term integration of XRP or the XRP Ledger (XRPL) into cross-border payment systems. These are not speculative traders looking to flip tokens quickly, but rather organizations building real-world utility.
This kind of demand helps strengthen the ecosystem and reinforces confidence in XRP’s underlying value proposition.
What Actually Drives XRP’s Price?
If not Ripple’s sales, then what determines XRP’s price movements?
According to Mickle, two primary forces dominate:
- Bitcoin’s Market Performance
Like most cryptocurrencies, XRP exhibits a strong correlation with Bitcoin (BTC). When BTC rallies or corrects, the broader market—including XRP—typically follows suit. Historically, major altcoin movements have been preceded by shifts in Bitcoin sentiment, driven by macroeconomic news, regulatory updates, or institutional adoption trends. - Ecosystem Development on XRPL
Independent of BTC trends, developments within the XRP Ledger (XRPL) ecosystem have increasingly influenced XRP’s trajectory. Upgrades like PayString, Flare Integration, and growing DeFi activity on XRPL-based platforms contribute directly to increased utility and investor interest.
In fact, there have been recent instances where XRP decoupled from Bitcoin, showing independent strength—such as a 40% rally reported by Bloomberg amid speculation around regulatory clarity and potential legal settlements.
At the time of writing, XRP had gained 29.19% over the past week and 17.95% in the last 30 days, despite a short-term dip of 5.62% in 24 hours bringing it to $0.5816. Its daily trading volume remained robust at $3.85 billion.
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FAQ: Common Questions About Ripple’s XRP Sales
Q: Does Ripple sell all 1 billion unlocked XRP every month?
A: No. Only about 20% (200 million) of the monthly unlocked XRP is potentially sold; the rest is re-locked into escrow for future needs.
Q: Are Ripple’s sales responsible for XRP price drops?
A: Evidence suggests otherwise. Sales are small relative to daily trading volume and executed via OTC deals that avoid market disruption.
Q: Who buys XRP from Ripple?
A: Primarily institutional clients and strategic partners integrating RippleNet or leveraging XRPL for payments and financial solutions.
Q: Is XRP price mainly influenced by BTC?
A: Yes, like most altcoins, XRP tends to follow Bitcoin trends—but it can also move independently based on XRPL innovation and adoption.
Q: Can Ripple manipulate the XRP price through supply control?
A: Not effectively. The market is too liquid, and Ripple’s sales are transparent and limited in scale.
Q: Has XRP ever outperformed Bitcoin recently?
A: Yes—within the past month, XRP surged over 40% while BTC saw more modest gains, signaling growing investor confidence in its standalone value.
The Bigger Picture: Utility Over Speculation
While headlines often focus on token sales and short-term price action, Mickle urges investors to look beyond surface-level narratives. The true strength of XRP lies not in supply mechanics but in its real-world application.
Ripple continues to expand its network of financial institutions using its technology for faster, cheaper cross-border transactions. Meanwhile, the decentralized XRPL supports an emerging ecosystem of decentralized applications (dApps), stablecoins, and smart contracts.
These developments foster organic demand for XRP—not just as a speculative asset but as a functional tool in global finance.
Furthermore, blaming Ripple for price suppression overlooks the complexity of crypto markets. Prices are shaped by countless variables: macro trends, regulatory news, technological breakthroughs, investor sentiment, and global liquidity conditions.
Final Thoughts: Look Beyond the Noise
The belief that Ripple’s monthly sales suppress XRP’s price persists due to visibility and timing—especially when releases coincide with market downturns. But deeper analysis reveals a more nuanced truth.
Ripple operates under a disciplined financial model designed to sustain growth without destabilizing markets. Its sales are neither sudden nor excessive and are absorbed efficiently by a deep and liquid trading ecosystem.
Ultimately, long-term investors should focus on ecosystem growth, adoption metrics, and macro-market trends rather than isolated token movements.
As the crypto landscape evolves, understanding what truly moves prices—rather than chasing narratives—is key to making informed decisions.
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