Ripple Labs Locks 700,000,000 XRP In Escrow as Price Nosedives

On Aug 2, 2025 at 2:58 pm UTC by · 3 mins read

Ripple Labs locked 700 million XRP in escrow after the token drops below $3. Price remains unstable following the Fed interest rate announcement.

Ripple Labs has locked 700,000,000 XRP in escrow after the price of the coin dropped below the $3 mark. This happened on August 2 and was flagged by Whale Alert, a platform known for tracking large cryptocurrency transactions. The move came at a time when XRP was already struggling in the market.

Ripple Moves Over $2 Billion Worth of XRP in Three Transfers

According to the update, Ripple made three large transactions, moving a total of 700 million XRP into escrow. The amounts were 100 million XRP, 500 million XRP, and another 100 million XRP.

In dollar value, these were worth $296.4 million, $1.48 billion, and $296.1 million, respectively. Altogether, that’s over $2 billion in value locked away.

Normally, Ripple unlocks 1 billion XRP at the start of each month and later locks most of it back into escrow, usually around 800 million. This time, the action took place on the second day of the month instead of the first. The shift in timing is not new, as Ripple has occasionally delayed this routine in recent months.

Before this major lock-up, Whale Alert also noticed two other large XRP transfers, one of 200 million XRP and another of 300 million XRP. These came from an unknown wallet and went straight to Ripple. These earlier moves are believed to be part of Ripple’s regular escrow-related activity.

It is worth mentioning that Ripple’s escrow system is not new. In July, Coinspeaker reported that Ripple locked 400,000,000 XRP in Escrow. This process is used to manage the flow of XRP and control how much enters the market at a time. By locking up large amounts, Ripple helps reduce sudden oversupply, which could affect the price even more. This system has been in place since 2017.

XRP Price Slips Below $3 After Fed’s Interest Rate Update

XRP’s recent drop is tied to news from the U.S. Federal Reserve. On July 30, the Fed announced that interest rates would stay the same for now. This led to a fall in Bitcoin’s price, and other coins, including XRP, followed the same path.

Since then, XRP has fallen over 10%, dropping from $3.32 to as low as $2.98. On Friday alone, the coin lost 4.2%. It tried to bounce back with a 3.35% rise but fell again by 1.28%. While XRP continues to nosedive, Coinspeaker reported that top analysts like Javon Marks remain bullish on an XRP price rally to $4.80.

At the time of writing, XRP is priced at $2.94, down 2.01% in 24 hours. Ripple’s latest escrow action could help limit supply and bring some balance. However, for now, the market remains cautious, and XRP holders are watching closely to see what happens next.

In related news, Coinspeaker noted that Bloomberg Analyst Eric Balchunas said that the XRP ETF could get approved as early as September or October. He maintains that the chances of approval by early fall remain at 85%.

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