Ripple (XRP) unlocked 1 billion tokens worth approximately $1.6 billion from escrow on Feb. 1, continuing its monthly release schedule as the cryptocurrency extended losses into February after declining more than 10% in January.
What Happened: Monthly Escrow Release
On-chain data showed the unlocks were executed in four separate transfers of 100 million, 400 million, 100 million, and 400 million XRP.
The monthly unlocks are part of a supply management mechanism introduced in 2017, when Ripple placed 55 billion XRP into escrow to allow up to 1 billion tokens to be released each month. The company typically relocks between 60% and 80% of unlocked tokens, retaining only a portion for operational expenses or liquidity needs.
Whale Alert reported that Ripple relocked 700 million XRP in two transactions worth roughly $1.09 billion combined, leaving a net 300 million XRP unlocked. XRP has dropped more than 6% in the first two days of February, trading at $1.57 at press time.
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Why It Matters: Analysts Divided on Outlook
Analysts remain split on XRP's trajectory. One analyst suggested the token is following familiar long-term cycles and predicted its next major rally may not arrive until Q4 2028, with price targets of $8 to $10.
David Schwartz, one of the chief architects of the XRP Ledger, offered a more measured view.
He argued that if rational investors truly believed XRP had a 10% chance of reaching $100 within a few years, the token would not trade at current levels. "That the current trading price is well below $10 shows that there aren't very many people who really think it has a 10% chance of hitting $100 within a few years with enough confidence to put their money where their mouth is," he wrote.
