Ripple Set to Unlock XRP in January as Traders Gauge Supply Risk

While the headline number often grabs attention, history suggests the actual increase in circulating supply will likely be far smaller.

This release is part of Ripple’s long-running escrow mechanism, introduced in 2017 to bring predictability to XRP’s supply. Under that framework, a fixed amount is unlocked each month, after which Ripple decides how much to keep available and how much to place back into escrow.

As the date approaches, the key question isn’t whether the unlock will happen — it will — but how much of it will meaningfully enter circulation.

What Past Unlocks Suggest

Recent patterns offer a useful guide. Over the last several months, Ripple has consistently returned the majority of unlocked XRP back into escrow. In many cases, between roughly two-thirds and four-fifths of the released tokens were re-locked almost immediately.

December 2025 followed that same template. Although 1 billion XRP was unlocked, only a relatively small portion was retained for operational or liquidity purposes, with the rest sent back to escrow. That approach has helped limit sudden supply shocks, even when the nominal unlock amount appears large.

If that behavior continues into January, only a fraction of the upcoming release is likely to become liquid.

Why the Market Still Watches Closely

Even when most tokens are re-escrowed, the unlocks remain important from a market psychology standpoint. At current prices, even a few hundred million XRP represents a meaningful sum, and traders tend to scrutinize on-chain movements for signs of large transfers or distribution activity.

Historically, these monthly events have not produced lasting price damage. Still, short-term volatility often increases around unlock dates as participants attempt to front-run or hedge against potential supply changes.

The January unlock is therefore less about immediate dilution and more about signals — particularly whether Ripple deviates from its usual re-locking behavior.

A Regulatory Backdrop Adds Complexity

What makes this unlock more interesting than most is its timing. January is also set to bring renewed attention to regulatory clarity in the United States, with the CLARITY Act confirmed for the same month. The legislation outlines how banks and financial institutions can engage with digital assets, including XRP.

That regulatory context could influence both sentiment and Ripple’s own decisions. A more favorable framework may reduce the need for aggressive re-escrowing, while uncertainty could push Ripple to remain conservative with supply.

Looking Ahead

As with prior unlocks, the January 1 event is unlikely to flood the market with XRP. The more meaningful variables will be how much Ripple chooses to keep available and how the broader regulatory narrative evolves in parallel.

For now, the escrow release appears less like a supply shock and more like a routine checkpoint — one that traders will watch closely, but one that history suggests may pass with limited long-term impact unless accompanied by a shift in strategy or sentiment.

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