Ripple is set to unlock 1 billion XRP from its escrow accounts on February 1, 2026, marking the second scheduled monthly release of the year following an identical unlock on January 1. This event is part of a predictable supply management framework the company established in 2017 to provide transparency and limit potential market shocks from sudden supply increases.
The escrow mechanism works by releasing up to 1 billion XRP on the first day of each month. However, historical data shows that the full amount does not immediately enter circulation. Following the January 1, 2026 release, Ripple re-locked roughly 700 million XRP (about 70%) back into new escrow contracts. This pattern leaves an estimated 300 million XRP net monthly increase in circulating supply, which Ripple uses for operational purposes like liquidity provision and ecosystem support.
Due to the well-known and anticipated nature of these releases, they have historically had a limited direct impact on XRP's price. As of mid-January 2026, XRP's circulating supply stands at approximately 65.78 billion tokens, with about 34.18 billion XRP remaining in escrow prior to the February unlock.
Concurrently, institutional demand has provided a counterbalance to the incremental supply increases. U.S. spot XRP exchange-traded products (ETFs) have reportedly absorbed more than $1.3 billion in assets so far this year, helping to offset inflationary pressure.
Amid this supply schedule, XRP's price has been largely influenced by broader market trends. At the time of reporting, XRP was trading near $1.96, down roughly 6% over 24 hours. Market analyst Arthur noted that XRP is trading near a high-activity price zone, suggesting buyer defense of the level. He identified $2.70 as the next major resistance target, which would require a gain of approximately 37.75% from current levels.
