Ripple’s Escrow System: Would Reducing Supply Impact XRP Price?

Ripple’s massive escrow has long been a focal point in the crypto world, dictating how much XRP enters the market and when. With a total supply of approximately 99.9 billion tokens, Ripple controls about 35 billion of these through its escrow system. This system was designed to prevent market volatility, but it often sparks debate over potential limitations on price growth. Now, the possibility of reducing this locked pool by 20% is fueling speculation on XRP’s future price dynamics. What would happen if a significant portion of XRP’s supply were permanently removed? 79.92 billion tokens would be left after a hypothetical reduction, according to a Google Gemini model. This leaves the circulating supply unchanged at 60 billion tokens, impacting immediate trading environments. The real impact will come from how this reduced supply affects future release and long-term trends.