- Ripple Labs has reduced its XRP escrow bag from 55 billion in 2017 to 35 billion in 2025
- On-chain data analysis shows institutional investors purchased $36 million worth of XRP last week
- XRP entered its price discovery phase last week fueled by robust fundamentals
The theory that Ripple Labs’ XRP escrow is a headwind for the token’s price is being forcefully challenged. This counter-argument, supported by legal expert Bill Morgan, comes amid some backlash against Ripple’s monthly sales of XRP to fund its operations.
According to on-chain data analysis, Ripple has reduced the XRP escrow account from 55 billion coins in 2017 to around 35 billion in July 2025. Morgan urged investors to disregard the moronic XRP ‘escrow dump theory’ and consider the value addition gained through Ripple’s efforts to build a robust XRPL network and the XRP market.
Using the SEC’s own words to debunk the “dump” theory
“Even the SEC recognised that the escrow was intended to buttress the price of XRP not deflate it. The SEC considered this to be one of the factors that would give investors an expectation of profits from the efforts of Ripple. It is one of the scores of grounds I have posted to discredit the moronic escrow dump theory,” Morgan noted.
XRP statistics show robust fundamentals
The adoption of XRP by institutional investors has grown exponentially in recent years. According to market data analysis from CoinShares, XRP recorded a total cash inflow of $36 million last week, thus raising its year-to-date inflow to about $267 million.
As Coin Edition previously pointed out, nearly a dozen fund managers have filed with the United States Securities and Exchange Commission (SEC) to offer spot XRP ETFs. Some of the fund managers include Canary Capital, 21Shares, WisdomTree, ProShares, and Franklin Templeton, among others.
The XRP’s bullish sentiment is bolstered by its spot and futures trading markets. For instance, the XRP’s funding rate recently increased to the positive edge, signaling bullish momentum. Historically, a consistent positive funding rate is associated with bullish sentiment and vice versa.
Meanwhile, the XRP’s futures Open Interest (OI) has surged to its all-time high, signaling heightened demand from speculative traders.
Related: Can XRP Lead the Altcoin Rally in 2025? Analysts’ Insights
The deep XRP liquidity across different global crypto exchanges has seen XRP’s OI surge from $3 billion in April 2025 to over $10 billion in July 2025.
Midterm Expectations
After a solid breakout from a symmetrical triangle established in the first half of 2025, XRP price has entered its euphoric phase of the bull run. The large-cap altcoin, with a fully diluted valuation of about $346 billion and a 24-hour average trading volume of around $9.3 billion, gained over 66% in the past three weeks to trade at about $3.46 on Tuesday, July 22, 2025.
From a technical analysis standpoint, XRP price has entered its parabolic phase fueled by robust fundamentals and a clear regulatory outlook.
Related: How Much XRP Is Actually Available for Business Use? Top Dev Explains
According to crypto analyst Ali Martinez, the XRP price is well-positioned to reach $6 in the near term following a consistent close above the falling logarithmic trend established in the first half of 2025.
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