**Key Takeaways**

– **What’s Ripple’s next move with its massive XRP escrow?**
Ripple may start monetizing its escrowed XRP supply by selling rights to future tokens. In short, this approach would allow the company to raise funds without adding immediate supply pressure to the market.

– **How are investors reacting to XRP’s price trend?**
Despite a 580% spike in long-term holder spending, XRP has dropped 27%, signaling weak bid support and fading investor confidence.

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No doubt, Ripple’s XRP escrow strategy has made its supply more predictable. This helps manage market flow and, more importantly, keeps stakeholders from being caught off guard. On paper, this sounds like a smart way to avoid inflation.

However, it also raises a key question: Is Ripple effectively managing inflation, or does this approach reflect a “lack of confidence” in natural market demand? According to AMBCrypto, how this plays out could shape XRP’s next move.

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### CTO Hints at Monetizing XRP Escrow Before Next Unlock

Ripple is set to unlock another 1 billion XRP as November begins. Currently, about 60.1 billion XRP are in active circulation, while 35.9 billion remain locked in escrow. Technically, if Ripple maintains its monthly release schedule, the remaining supply would be fully unlocked by 2028.

But here’s where things get interesting.

Typically, only 200 to 300 million XRP from each unlock actually makes its way onto the market, while the rest is “re-escrowed.” Given this setup, Ripple’s CTO recently made a key announcement.

In a post on X, he suggested monetizing Ripple’s escrowed holdings. Until now, unused tokens were locked back up, meaning Ripple couldn’t pre-sell them. However, by “selling the rights” to buy XRP from future releases, Ripple could raise funds without adding immediate liquidity to the market.

Simply put, the 35.9 billion XRP could be pre-sold to investors, but the tokens would remain off-market until their scheduled release dates—thereby controlling supply.

Could this mark Ripple’s next big step toward institutionalization?

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### Restoring Investor Confidence Is Ripple’s Toughest Test Yet

While Ripple is pushing to secure its future, its present looks fragile.

On the charts, XRP started Q4 with a 13% drop, ranking among the worst-performing large-cap assets. Sure, the broader market slump offers some cover, but Ripple’s underperformance still stands out.

Supporting this bearish undertone, Glassnode data reveals a striking trend: Long-term holders (LTHs)—those who accumulated XRP before the election—have increased their spending by 580%. Yet, despite this surge, XRP’s price has declined 27%, highlighting a thin bid wall and signaling unstable investor confidence.

The chart illustrates Spent Volume spiking from $38 million to $260 million per day (7-day SMA). This sharp increase suggests long-term holders are cashing out on massive gains after XRP’s 270%+ rally since Q4 2024.

Against this backdrop, Ripple’s escrow strategy appears more like a hedge against weak market demand.

So, while monetizing the supply could be a bold strategic move, its impact on price stability may remain limited.

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**Conclusion**

Ripple’s plan to monetize its massive XRP escrow by selling rights to future tokens offers an innovative way to raise funds without flooding the market. Yet, with weakening investor confidence and ongoing price declines, Ripple faces a critical challenge: restoring trust and demonstrating that market demand can support sustainable growth. How this strategy unfolds will likely define XRP’s trajectory in the months and years ahead.
https://ambcrypto.com/all-about-ripples-new-plan-to-monetize-35-9b-xrp-held-in-escrow