Ripple released 1 billion XRP from escrow on January 1, following its established monthly schedule.
The company immediately re-locked 700 million tokens - 70% of the release - back into long-term storage.
The remaining 300 million XRP will support liquidity operations and ecosystem expansion.
Total circulating supply reached 65.78 billion XRP, while 34.18 billion remains in escrow, according to XRPSCAN data.
What Happened
Ripple's January unlock mirrors December's pattern, when the company released 1 billion XRP and re-escrowed 70% in three separate transactions.
The practice follows an escrow framework established in 2017 to provide supply transparency and predictability.
Ripple typically re-locks between 60% and 80% of monthly releases, retaining only a fraction for operational needs.
XRP traded near $1.84 on January 1, extending a decline that began in September 2025.
By January 2, the price improved to $1.87, up 1.6% in 24 hours.
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Why It Matters
Monthly escrow releases have historically produced muted price reactions despite large headline figures.
Japan's 2026 tax reforms reducing crypto taxes from 55% to 20% could boost institutional and retail demand.
The country also launched its first XRP ETF, opening new investment channels.
XRP reclaimed its 50% Fibonacci retracement level at $1.87 and registered a bullish MACD crossover.
Exchange-held XRP supply dropped to 1.6 billion tokens - its lowest level since 2018 - down 57% since October.
The tightening supply could amplify price movements when demand increases.
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