$XRP Ripple Labs is preparing for its next scheduled XRP escrow unlock, releasing 1 billion XRP tokens on June 1 a move valued at over $2.3 billion at current market prices. This release, part of Ripple's long-standing monthly cycle, is raising questions across the crypto community: Could this unlock trigger a sell-off?
What Is Ripple’s Escrow System?
Since 2017, Ripple has implemented a predictable monthly release mechanism, unlocking 1 billion XRP to ensure transparency in token distribution and manage market supply. However, history shows that Ripple rarely injects the full amount into circulation.
Typically, 60–70% of the unlocked tokens are returned to escrow, while the rest are used for ecosystem growth, operational costs, and liquidity provisioning. In some months, Ripple has pre-locked XRP even before the scheduled release — an approach that helps reassure investors and minimize market shocks.
What’s Different This Time?
The June unlock gains added attention due to the looming June 17 deadline for the SEC’s decision on spot XRP ETFs. The combination of a billion-token release and potential regulatory headlines could create heightened volatility.
Moreover, XRP's price has been range-bound in recent weeks, and a sudden influx of liquidity even partially released could put downward pressure on price if met with weak buying interest.
Will There Be a Sell-Off?
While large unlocks often raise concerns of dumping, historical trends suggest Ripple exercises caution. Unless Ripple diverts from its usual pattern and injects a significant portion of tokens into the market, a major sell-off appears unlikely.
Still, with investor eyes fixed on both the unlock and the ETF decision, XRP’s price could see short-term swings as the market digests these developments.
