Ripple will unlock 1 billion XRP on January 1, 2026 — What will happen?

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Ripple is scheduled to unlock 1 billion XRP from the escrow mechanism on 1/1/2026, marking the first token unlock of the new year. However, as has been customary for many years, not all of these XRP will be released to the market. The unlock is part of the escrow schedule established in 2017 to increase transparency and predictability of supply.

Under this mechanism, Ripple unlocks 1 billion XRP each month, but usually only retains a portion for operational needs or liquidity, with the rest being locked again. In recent months, Ripple has typically re-escrowed 60–80% of the unlocked XRP. Specifically, in December 2025, about 70% of the XRP was re-locked, with only a small part kept for distribution.

Nevertheless, even the actual circulating XRP has significant value, prompting traders to closely monitor on-chain activity and price fluctuations. Notably, this unlock occurs amid the upcoming review of the CLARITY Act in January, which could influence market sentiment and XRP price movements in the near future.

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