Bill Morgan said XRP locked in Ripple’s escrow accounts fell below 32.5% of total supply

The amount of XRP tokens locked in Ripple’s escrow accounts continues to drop, according to XRP advocate and legal expert Bill Morgan. Morgan revealed that the portion of XRP held in escrow has now slipped below 32.5% of the total supply. This figure marks a significant shift, sparking renewed debate over longstanding claims that escrow accounts hold between 35% and 40% of all XRP—a range now proven outdated.

Share of XRP in escrow declines

Morgan noted that nearly a year ago, escrow accounts constituted close to 36% of all XRP in circulation, but this share has been gradually decreasing over time. While Ripple unlocks 1 billion XRP from escrow every month, only a fraction is returned to escrow accounts. Naturally, this means the locked balance gets smaller as months pass.

Morgan explained that, on average, around 300 million XRP released each month are not relocked in escrow. These tokens, instead, are deployed in institutional partnerships, liquidity services, and ecosystem development. This use case has steadily reduced the share Ripple holds in escrow accounts over time.

Mini glossary: An escrow account refers to token balances locked under a predetermined schedule and released over time. Ripple uses this system to plan the future supply of XRP entering the market.

Challenge to outdated supply data

Despite blockchain data being publicly available, Morgan expressed concern that outdated supply statistics continue to circulate. He especially called out some Bitcoin supporters who still claim Ripple controls more than half of all XRP, dismissing these assertions as inaccurate in light of current numbers.

Should current trends persist, Morgan estimates that by July next year, the share of XRP in escrow accounts could fall below 29% of total supply. This would mean Ripple’s locked token holdings will exert even less influence on overall XRP liquidity.

Market sees limited price impact

Morgan’s latest remarks came just after Ripple completed its planned release of 1 billion XRP for July. While such monthly unlocks often raise concerns about possible sell pressure, Ripple’s history shows that most released tokens are relocked rather than sold, mitigating market anxiety.

The most recent event did not trigger a significant negative market reaction. XRP’s price climbed between 3% and 4% to break past $1.10, ultimately reaching $1.12. Persistent demand at higher price levels increased confidence that the $1.10 region may now act as a key support, rather than resistance.

These disclosures have reignited debate around XRP’s tokenomics. Supporters see the dwindling escrow balance as a sign of a more market-oriented and dispersed supply structure, which they argue leads to healthier asset distribution over time.

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