Tightening XRP Supply Sparks Rally Hopes – But Escrow Unlock Looms
The amount of XRP held on crypto exchanges has dropped to its lowest point in a month, falling to roughly 2.74 billion tokens.
That’s a noticeable decline from the 2.82 billion recorded on March 10—an indication that fewer tokens are available for immediate sale.
Historically, a shrinking supply on exchanges often aligns with reduced sell pressure, which can create the conditions for upward price movement. As of now, XRP is trading around the $2 mark, bouncing off a critical support level after financial markets rallied on the back of President Trump’s temporary pause on tariffs.
Adding to the momentum, XRP has seen a surge in network activity and derivatives trading. On April 9, the network hit record usage, while futures volume on the previous day spiked to a one-month high of $21.6 billion, with $500 million of that volume coming in just 24 hours. At the same time, the launch of the Teucrium 2x Long Daily XRP ETF (XXRP) on April 8 attracted $5 million in trades during its debut—putting it among the most actively traded ETF launches.
Still, the rally faces a potential roadblock. On May 1, Ripple is set to unlock 1 billion XRP tokens from escrow as part of its scheduled release. Although the majority of these tokens don’t immediately hit the open market, a significant portion typically does—often in the hundreds of millions. That influx could introduce enough selling pressure to cap further gains, especially since XRP must reclaim and hold the $2.10 level to sustain any bullish momentum.
In the short term, while reduced exchange supply and fresh institutional products offer a bullish backdrop, upcoming token unlocks may weigh on sentiment and keep XRP’s price trajectory closely aligned with broader market trends.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
