Bill Morgan Reveals XRP Escrow Has Fallen Below 32.5% as Supply Myth Unravels
The amount of XRP locked in Ripple's escrow continues to decline, undermining one of the most persistent narratives surrounding the cryptocurrency's supply.
According to pro-XRP lawyer Bill Morgan, less than 32.5% of XRP's total supply is now held in escrow, well below the 35% to 40% figures that critics continue to cite.
Morgan noted that nearly a year ago, escrow accounted for just under 36% of XRP's supply. Since then, the percentage has steadily fallen as Ripple continues its long-standing practice of unlocking 1 billion XRP each month while re-locking only a portion of those tokens.
On average, about 300 million XRP is not returned to escrow, gradually reducing the overall escrow balance.
He explained that this trend is expected, as the unrelocked XRP is used for purposes such as institutional partnerships, liquidity services, and ecosystem growth. As a result, Ripple's escrow holdings naturally decline over time.
What Morgan finds more surprising is that outdated supply figures continue to circulate despite publicly available on-chain data showing otherwise. He pushed back against claims that 35% or 40% of XRP remains in escrow and dismissed assertions from some Bitcoin proponents that Ripple still controls more than half of the token's supply.
Shrinking XRP Escrow and Strong Price Action Reinforce Ripple's Bullish Narrative
If the current pace continues, Morgan estimates that less than 29% of XRP's total supply could remain in escrow by July next year, further reducing Ripple's share of locked tokens.
His remarks came shortly after Ripple completed its scheduled July release of 1 billion XRP from escrow. While the monthly unlock often fuels concerns about potential selling pressure, Ripple has historically re-escrowed most of the released tokens, limiting the amount that enters circulation.
The latest release had little negative impact on market sentiment. Instead, XRP climbed about 3% to 4%, breaking above $1.10 before extending its gains. According to CoinCodex, XRP is now trading at $1.12, with buyers continuing to defend higher lows. This move has strengthened expectations that $1.10 could flip from resistance into a key support level, reinforcing the asset's bullish technical structure.
Well, there is more than meets the eye since Morgan's remarks have also reignited debate over XRP's tokenomics, with supporters arguing that the shrinking escrow balance reflects a progressively less concentrated distribution model as more XRP enters the broader market.
