A new wave of discussion among XRP traders is focusing on the potential bullish impact of Ripple’s colossal escrow reserves being deployed into automated market maker (AMM) pools on the XRP Ledger. Ripple currently holds approximately 35.6 billion XRP in escrow, and a monthly unlocking mechanism has long been seen as a source of future sell pressure. However, some analysts now argue that directing those locked tokens into AMM liquidity pools could dramatically shift supply dynamics.
AMM pools on the XRP Ledger are smart contract-based systems that allow instant asset swaps without traditional order books. Liquidity providers earn fees, incentivizing them to keep XRP locked for extended periods. If XRP Ledger adoption for cross-border settlement and institutional finance grows, demand for liquidity could surge, and the deployment of escrow funds would simultaneously reduce freely circulating supply while boosting utility.
The optimistic scenario also hinges on regulatory progress, with the CLARITY Act—proposed US legislation to clarify which digital assets are commodities—potentially giving Ripple greater flexibility to utilize escrow reserves. Institutional interest is already building: spot XRP ETFs recorded approximately $60.5 million in weekly net inflows, bringing cumulative inflows to about $1.39 billion. Whale wallets have accumulated over 4 billion XRP since October 2025, now controlling roughly 32% of the circulating supply.
From a technical standpoint, XRP market capitalization remains above the 100-period simple moving average near $87.84 billion, a critical support zone. ChatGPT’s analysis suggests that if market cap reclaims the $92–$100 billion range, XRP price could initially rise toward $1.80–$2.20, with the possibility of exceeding $3 if institutional adoption, ETF demand, and network liquidity growth accelerate further.
