Ripple’s escrow releases are still rattling the market. In early last month, 1 billion XRP was released, but based on the current market price, it’s worth about $1.4 billion. Over the past few days, XRP has been soft, down 2.6% over the last 24 hours; it looks like it’s been slightly positive over the past week, but I guess many people are still keeping an eye on supply pressure.

Ripple’s escrow system is actually fairly well designed. Although 1 billion is released every month, 70–80% of that is returned to new escrow contracts. Only the remaining 200–300 million are actually supplied to the market. So the impact shouldn’t be as big as the headline numbers suggest, but in a bearish market, it likely weighs on people psychologically.

Currently, XRP’s market capitalization is about $87.2 billion, and the circulating supply is slightly over 61.5 billion tokens. Because of its large scale, the monthly Ripple release events are closely watched. In reality, the key is how much new supply the market can absorb. In today’s market conditions, even a controlled release seems to create an emotional sense of pressure on traders.