- Despite the recent positive announcements, none of them have yet translated into a big price increase, as XRP is still hovering at about $3.03, which is approximately 3% decrease in the last 24 hours
- Bill Morgan pointed out that after the final XRP tokens are released from escrow, the supply could become inflationary
- As of mid-2025, about 35.9 billion XRP tokens remain in escrow under Ripple’s release schedule, meaning that nearly 40% of the total supply is locked in escrow
There have been discussions and observations regarding several recent positive developments for XRP, such as the announcement of an XRP ETF and options on XRP futures. However, none of this has yet translated into a big price increase, as the cryptocurrency is still hovering at about $3.03, which is approximately 3% decrease in the last 24 hours.
Some pointed out that because the circulating supply is increasing over time (since not all of the maximum supply of 100 billion XRP has been distributed yet), this makes $XRP inflationary, which might dilute the price.
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Bill Morgan, a lawyer who supports the crypto industry, acknowledged that to be true. He emphasizes that XRP is a finite asset. Once all XRP has been released from escrow, mechanisms like token burns could be implemented to permanently remove tokens from the supply, making it either deflationary or, at a minimum, non-inflationary.
In the past, Morgan also defended Ripple’s system of holding back a large amount of XRP and releasing it in a steady, planned way each month. He said this is good for the market because it makes things predictable, arguing that this kind of planned release is not the same as uncontrolled inflation, where the supply grows unexpectedly.
XRP supply, escrow, and market perception
As of mid-2025, about 35.9 billion XRP tokens remain in escrow under Ripple’s release schedule, meaning that nearly 40% of the total supply is locked.
As per CoinMarketCap, XRP’s circulating supply is roughly 59.77 billion XRP (almost 60% of the total supply of 100 billion) across exchanges, wallets, and similar.
It’s worth noting that many crypto projects’ value propositions depend in part on limited supply or deflationary mechanics. XRP’s fixed maximum supply is often cited, but because of its escrow release schedule, circulating supply increases over time until full distribution.
Claims that XRP’s value is diluted by its increasing supply can negatively impact market perception. Morgan points out that the price of XRP has still gone up over time, even with the new coins coming out, showing that the growing supply hasn’t had a notable negative effect on its value to date.
Related: XRP ETFs and CME Options: Is Wall Street Finally Paying Attention?
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Source: https://coinedition.com/lawyer-bill-morgan-addresses-inflation-concerns-amid-xrps-stagnant-price/
