XRP price is back under pressure alongside the broader crypto market, trading around $1.34 after falling roughly 2%–3% over the past day. Bitcoin has also moved lower, which shows the view th
XRP price is back under pressure alongside the broader crypto market, trading around $1.34 after falling roughly 2%–3% over the past day. Bitcoin has also moved lower, which shows the view that XRP’s latest weakness is part of a wider risk-off move rather than an isolated XRP event. Live market data currently places XRP near $1.34.
The timing is interesting because Ripple has just completed another round of its closely watched monthly XRP escrow process; an event that has historically fueled claims that Ripple’s token distributions suppress the XRP price.
Crypto lawyer Bill Morgan thinks the latest price action provides another reason to question that theory.
At the beginning of September, Ripple’s scheduled escrow mechanism released 1 billion XRP through three transactions of 500 million, 400 million and 100 million tokens. This is part of the predictable monthly system Ripple established after originally locking 55 billion XRP into escrow in 2017.
The important part is what happened afterward.
On-chain reporting indicates that 700 million XRP was placed back into new escrow contracts, consisting of a 500 million XRP transaction and another 200 million XRP transaction. That leaves approximately 300 million XRP outside the newly created escrows in a Ripple-controlled wallet.
This is worth clarifying because a viral post described the movements as 300 million, 500 million and 200 million XRP being “locked” back into escrow, which would total the full 1 billion.
The on-chain transaction breakdown cited by validators instead shows only the 500 million and 200 million transactions as new EscrowCreate transactions. The remaining 300 million XRP was transferred to a Ripple-controlled wallet rather than locked into another escrow.
So the more accurate summary is: 1 billion XRP became available, 700 million was re-escrowed, and 300 million remained available to Ripple.
An important distinction follows from that as well. The 300 million XRP being outside escrow does not mean Ripple immediately sold 300 million XRP on the open market.
Read also: XRP Price’s Latest Dump May Be Hiding a Bigger Move!
The escrow system has been controversial among some XRP holders for years.
And price of $XRP fell with Bitcoin and broader crypto sentiment. The scattered few loser remnants of the ripple escrow dump theory FUD are in total disarray.
— bill morgan (@Belisarius2020) September 1, 2026For me, having spent years giving reasons to dismantle that asinine theory, is just the 59th additional… https://t.co/xG8AYhSSEz
The argument is relatively straightforward: Ripple controls a substantial XRP treasury, tokens regularly become available through escrow, and some critics believe Ripple’s distributions create persistent sell-side pressure that prevents XRP from performing better.
Morgan has repeatedly pushed back against that explanation.
Responding to the latest escrow activity, he pointed out that XRP fell alongside Bitcoin and the broader crypto market, despite hundreds of millions of XRP being locked back into escrow.
In his view, this is yet another example showing that Ripple’s escrow distributions have little explanatory power when trying to understand short-term XRP price movements.
There is some logic behind his argument.
If Ripple’s escrow activity were the dominant factor controlling XRP price, investors might expect XRP to react particularly strongly whenever large quantities become available, or positively when a substantial portion is locked away again.
Instead, XRP’s latest decline has occurred during a broader crypto selloff. Bitcoin has also fallen, while Ethereum, Solana and other large-cap assets have been under pressure.
That makes broader market sentiment a much more immediate explanation for today’s XRP decline.
Not quite.
Morgan’s criticism of the simplistic “Ripple unlocks XRP, therefore XRP dumps” narrative is reasonable, but the opposite extreme would also be difficult to prove.
Ripple’s XRP distributions can still affect the market over longer periods because tokens that remain outside escrow can eventually enter circulation. Supply matters, particularly when measured over months or years.
Ripple itself originally created the escrow system specifically to make the maximum amount of XRP entering the market more predictable. The company explained that unused XRP would be returned to the back of the escrow schedule rather than automatically entering circulation.
The mistake is assuming that an escrow unlock equals an immediate market sale.
It doesn’t.
Likewise, moving XRP into a Ripple-controlled wallet isn’t proof those tokens were sold, and locking 700 million XRP doesn’t guarantee the XRP price should immediately rise.
Subscribe to our YouTube channel for daily crypto updates, market insights, and expert analysis.
The post XRP Price Just Challenged One of the Biggest Ripple “Dump” Theories appeared first on CaptainAltcoin.
