Ripple executed its scheduled monthly release of 1 billion XRP from escrow at the start of February. While 700 million were quickly re-locked, the move still resulted in a net addition of 300 million XRP to the circulating supply, contributing to ongoing selling pressure.
The release coincides with a difficult period for XRP, which recently fell to its lowest price since October. Ripple’s Chief Technology Officer, David Schwartz, added a sobering perspective, noting that current prices reflect a market with little expectation that XRP will reach ambitious targets like $100.
For traders, this is a lesson in fundamental mechanics. Scheduled, large supply unlocks can act as a persistent overhang on price, especially during weak market sentiment. For young investors, it highlights the importance of looking beyond hype to understand a project’s tokenomics. While XRP has real-world utility, its price path is a complex equation of adoption, supply schedules, and broader market cycles.