TL;DR
- The XRP Ledger recorded the locking of 4,000,000 XRP (~$10.5 million) in escrow, with the tokens sent to the Flare Core Vault.
- Flare Core Vault holds over 1,570,000,000 XRP and serves as collateral and governance support.
- The locked tokens represent claims that can be transferred between entities.
The XRP Ledger recently recorded the locking of 4,000,000 XRP, equivalent to $10.5 million, in an escrow process.
Although the amount is small compared to the billions Ripple releases monthly, the operation drew attention due to its impact on the token’s supply dynamics. Whale Alert data confirmed that the tokens were not withdrawn by a random investor but were sent to the Flare Core Vault, which already holds over 1,570,000,000 XRP, playing a central role in Flare’s network infrastructure.
Escrows Hold 33% of XRP Supply
The Flare Core Vault functions as support for collateral and governance within the ecosystem, integrating with the management of escrows that currently hold over 35,000,000,000 XRP, approximately 33% of the cryptocurrency’s total supply. Unlike tokens awaiting release dates, the tokens locked in this type of wallet represent claims that can move between entities and function as financial instruments in their own right.
The operation exemplifies the importance of escrows in shaping XRP’s circulating supply. While trading volumes and exchange flows determine part of market liquidity, the control and reassignment of these funds directly influence the available supply and, consequently, buying and selling pressure. In this context, the Flare Core Vault transfer represents an active supply management mechanism, with direct implications for price stability and liquidity planning within the ecosystem.
Additionally, the transparency of the operation allows insight into how XRP whales use regulatory and governance tools to manage large amounts of assets.
XRP’s supply is not determined solely by exchange transactions but by the strategic handling of escrows and large institutional vaults. Flare highlights the ecosystem’s evolution, moving toward more sophisticated control over token circulation and the use of on-chain instruments that directly impact market dynamics
