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Ripple is returning approximately 700 million XRP to escrow each month, sharply reducing net XRP sales.
Lower sell pressure from Ripple is tightening supply in the Crypto Market.
Growing demand for XRP spot ETFs and rising network activity could support long-term price stability for XRP.
The phrase ‘flip the switch’ has been used by analysts and crypto commentators to describe a possible big shift in how Ripple handles XRP sales. It does not mean a single button was pressed. Instead, it refers to a change in strategy that could lead to little or no direct sales of XRP by the company in the open market.
For many years, Ripple has been one of the largest holders of XRP. Every move the company makes with its tokens affects the market. When large amounts are released from deposits, it can create selling pressure. When sales decline, supply pressure decreases. This is why recent changes have gained so much attention.
Ripple placed 55 billion XRP into escrow back in 2017. Since then, 1 billion XRP has been released from escrow every month under a preset schedule. However, the full 1 billion is not usually sold. A big portion is returned into escrow.
Recent data show that Ripple has been returning about 700 million XRP per month to escrow. That means only about 300 million XRP remains from each release. Even from that amount, not all of it is sold into public exchanges. Some tokens are used for operational costs, partnerships, or over-the-counter (OTC) transactions.
This detail is important, as headline numbers can look large, but the net sales are much smaller. The real number that matters is how much XRP actually enters the open market and creates sell pressure.
The long legal battle between Ripple and the US regulator changed many things. The case brought major uncertainty to XRP markets for years. After court decisions and settlements, Ripple faced restrictions on certain institutional sales in the United States.
Due to these legal outcomes, direct institutional XRP sales in the US became more limited. This situation appears to align with the sharp decline in public sales seen in recent quarters. Regulatory pressure may have forced Ripple to reduce how and where the altcoin is sold.
Also Read: XRP Make-or-Break Moment: Is This the Start of a Big Move?
Quarterly tracking data shows that Ripple’s net XRP sales are far lower compared to earlier years. In past cycles, hundreds of millions of dollars worth of the altcoin were sold in some quarters. That created constant supply pressure in the market.
Now, reports indicate that net sales volumes have dropped significantly. The majority of monthly escrow releases are being re-locked. This creates a tighter supply condition than before. If demand stays the same or increases, a lower supply can support price stability.
Some analysts believe this is one reason XRP has maintained a stronger price floor than in previous periods of heavy distribution.
The crypto market has seen fresh institutional interest. XRP ETFs have launched in certain global markets, creating new channels of demand. These products allow investors to gain exposure to XRP without directly holding the token.
Blockchain usage metrics show rising transaction activity and burn rates. Ripple’s altcoin uses a small transaction fee that is permanently removed. Higher network activity means slightly more XRP being removed from supply over time. The burn amount is small, but it still contributes to long-term supply reduction.
With rising ETF demand and Ripple's ongoing global adoption efforts, the supply-demand balance may be shifting.
Also Read: XRP Ledger Activates Permissioned Domains to Unlock Regulated DeFi
If Ripple continues to return 700 million XRP per month to escrow and keeps public sales minimal, the long-term impact could be meaningful. Reduced selling pressure from the largest holder changes the market dynamic. It moves XRP from a supply-heavy narrative to one more focused on adoption and usage.
On-chain data shows lower net sales, higher re-locking rates, and shifting demand patterns. If this trend continues, the XRP market structure could look very different in the coming years. It is a gradual change that many investors did not expect before.
Ripple still controls a very large amount of XRP in escrow. Any future decision to increase sales would change the situation again. Market participants are expected to continue to watch quarterly net sales reports and escrow data closely.
What does “Flip the Switch” mean for XRP?
It refers to Ripple possibly reducing or stopping major XRP sales, lowering market sell pressure.
How much XRP is released each month?
1 billion XRP is released from escrow monthly, but about 700 million is typically returned to escrow.
Are XRP sales completely stopped?
Sales are not completely halted, but net sales have decreased significantly compared to previous years.
How do XRP spot ETFs affect the market?
XRP spot ETFs create new demand channels, allowing investors to gain exposure without directly holding XRP.
Why is reduced XRP selling important?
Lower selling by Ripple means fewer coins entering the Crypto Market, which can support stronger price stability if demand remains steady.
