Flare’s latest move to lock 4 million XRP into escrow adds to its growing control of network supply.
Around 4 million XRP (XRP-USD), worth more than $10.5 million, was locked into escrow this week. The move takes some tokens out of circulation and has traders wondering if it could lift XRP’s price in the days ahead. Blockchain tracker Whale Alert flagged the transfer on Wednesday, linking it to the Flare Core Vault, which a key infrastructure wallet already holding more than 1.57 billion XRP.
The move adds to a broader pattern of consolidation by Flare, which uses its vaults to manage collateral and governance across its ecosystem. It’s the latest example of how large institutional holders are quietly shaping the XRP Ledger’s supply dynamics and why traders are paying closer attention to escrow activity alongside exchange flows.
Flare’s growing reserves underline how much XRP supply sits outside normal trading channels. More than 35 billion XRP, roughly one-third of total supply, remains locked in various escrows across the network. While this new 4 million addition is small in comparison, every reduction in circulating tokens matters for liquidity and sentiment.
For XRP, which has been holding near $2.55 in recent sessions, supply tightness can act as a subtle stabilizer in volatile conditions. Analysts note that when major holders restrict available supply, it can cushion short-term downside pressure, particularly when trading volumes are thin.
The move also comes just days after Ripple CTO David Schwartz highlighted that XRP escrows are more flexible than many assume. He said the rights to locked tokens can be “cloned, reassigned, or sold,” suggesting that even escrowed XRP can shift between entities and serve as financial instruments in their own right.
This nuance is important. It means “locked” doesn’t always mean “frozen” and that XRP supply can still move in meaningful ways beneath the surface. For investors, this highlights the complexity of tracking true liquidity across the network, where both Ripple and ecosystem partners like Flare play major roles in how supply is managed.
At face value, the 4 million XRP lock-up may not shake markets overnight, but it highlights a deeper reality that supply management remains central to XRP’s long-term story. Each new escrow event reveals how much control still resides with large entities shaping liquidity conditions from behind the scenes.
For now, XRP’s price remains stable around $2.55, but the accumulation trend, particularly by entities tied to Ripple’s ecosystem, could amplify future volatility if those tokens are later reintroduced or reassigned. Traders watching the ledger’s movements see these escrow shifts as early signals of potential pressure points ahead.
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