XRP escrow reserves controlled by Ripple may run dry within the coming decade as the firm continues its monthly token releases and re-locks. The specific depletion timeline depends heavily on how much XRP Ripple chooses to retain or return to escrow each month.

Current State of Ripple’s XRP Escrow Holdings

Ripple introduced its escrow system in December 2017, locking over 54 billion XRP to ensure a stable and predictable supply schedule. Since then, the company has released 1 billion XRP each month under this structured plan. To mitigate market oversaturation, Ripple generally re-locks a substantial portion of those tokens back into escrow.

As of August 2025, Ripple’s active escrow holdings amount to 35.6 billion XRP, distributed across multiple wallets and valued at approximately $106.8 billion. These funds are being tracked carefully each month, especially as the total continues to decline over time.

Monthly Release and Re-Locking Behavior in 2025

In the first eight months of 2025, Ripple has consistently stuck to its standard practice of unlocking 1 billion XRP every month. Typically, about 700 million XRP gets returned to escrow, aside from June when only 670 million XRP were re-locked. This means Ripple is usually utilizing around 300 million XRP per month, although that number has occasionally climbed to 330 million.

Such regular activity highlights Ripple’s attempt to balance token manageability with liquidity needs, but also signals a steady drawdown of its total escrowed reserves.

Forecasting the End of Ripple’s Escrow

Tracking sources like the XRP Liquidity account have projected various exhaustion scenarios based on Ripple’s behavior.

If the company sticks to its current pattern of using 300 million XRP per month, the remaining 35.6 billion XRP will last roughly 9 years and 8 months—putting the depletion date somewhere in 2035. By September 2025, after accounting for the re-lock process, the escrow reserve is expected to fall slightly to 35.3 billion XRP.

On the other hand, increasing monthly usage to 400 million XRP shortens the remaining lifespan to about 7.5 years, meaning Ripple would run out by around 2033. A more drastic scenario—where no XRP is re-locked—would drive 12 billion XRP into circulation annually and would cause the total reserve to collapse in just three years.

Ripple’s Strategy Shapes XRP’s Long-Term Outlook

Whether Ripple adheres to its current approach or adjusts its strategy remains to be seen. As noted in a previous analysis (Ripple’s escrow depletion timeline), these decisions will have outsized effects on market dynamics.

Maintaining the usual 700 million monthly re-locks will allow Ripple to stretch its reserves into the mid-2030s. But speeding up XRP distribution by retaining more tokens each month would quickly shorten that window.

Investors, analysts and the XRP community are paying close attention to each monthly release—both the initial 1 billion XRP movement and the follow-up escrow re-lock. These token flows offer ongoing insights into how long Ripple’s reserve power will last and how it might impact the future of XRP’s circulating supply.

Related: XRP Price: $12M Max Pain for Bears

Illustration of blockchain ledger concept, representing XRP escrow activity and digital asset management.