XRP Slips Below $2 Ahead of February Escrow Release

XRP is heading into its next scheduled escrow release under renewed price pressure, with the token trading below $2 ahead of Ripple’s February unlock.

On February 1, Ripple is set to release up to 1 billion XRP from escrow, continuing a monthly supply schedule that has been in place for years.

The drop below the $2 level has added short-term sensitivity to the event, even though the mechanics of the release are widely understood.

XRP reclaimed higher levels earlier in the year, but recent market weakness has pushed the token back under a key psychological threshold just weeks before the next unlock.

Why the headline unlock overstates real supply pressure

Although the escrow contract allows for the release of 1 billion XRP, history suggests only a fraction will remain in circulation. Ripple routinely returns most unlocked tokens back into new escrow contracts, delaying their release further into the future.

That pattern was repeated in January, when roughly 700 million XRP were re-locked. Only about 300 million XRP were left available for operational use, such as liquidity support and ecosystem funding. As a result, the net increase in circulating supply tends to be far smaller than the headline number implies.

Predictable supply, muted reactions

Because the escrow schedule has been public since 2017, markets generally treat these events as expected rather than disruptive. The consistency of Ripple’s relocking behavior has helped limit sudden supply shocks, which is why monthly unlocks have rarely triggered sharp standalone price moves.

Still, with XRP now trading below $2, traders are paying closer attention to how much supply ultimately stays unlocked and whether demand remains strong enough to absorb it.

Circulating supply versus institutional flows

As of mid-January 2026, XRP’s circulating supply stands near 65.78 billion tokens, with just over 34 billion XRP still held in escrow prior to the February release. While that structure allows for gradual supply expansion, demand has increasingly come from institutional channels.

Spot XRP exchange-traded products in the United States have reportedly taken in more than $1.3 billion in assets so far this year, helping offset the inflationary effect of incremental supply additions.

What matters going forward

With the February escrow event approaching, the market’s focus is less on the scheduled 1 billion XRP unlock and more on the net supply increase, especially as XRP trades below $2. That balance between predictable issuance and real demand continues to shape price behavior more than the unlock itself.

In that context, the upcoming release looks less like a supply shock and more like another test of whether current demand can stabilize XRP around key price levels.

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