The price of XRP fell to $2.19 on July 2, 2025, marking a 0.87% daily decline as Ripple Labs completed its latest escrow activity. While the broader crypto market remains steady, XRP’s movement reflects a mix of investor caution and technological shifts.
XRP dips despite major network milestone
XRP began the day trading just above $2.20 before slipping to $2.19 by midday. This mild pullback followed a high-profile announcement from Ripple Labs involving two major developments:
- The lockup of 400 million XRP in escrow, identified by on-chain data from Whale Alert.
- The official launch of the XRPL EVM sidechain on mainnet, bringing Ethereum smart contract compatibility to the XRP Ledger.
Despite the long-term potential of these updates, immediate price impact has been subdued.
Ripple’s escrow adjustments raise questions
Historically, Ripple unlocks 1 billion XRP monthly and locks a portion back into escrow. However, recent activity signals a departure from that pattern:
- July unlock: 500 million XRP released in two tranches (300M + 200M)
- 400 million XRP subsequently locked back into escrow
- A third 300M transaction was attempted but reportedly failed
This reshuffling suggests internal repositioning for use in Ripple’s On-Demand Liquidity (ODL) products or exchange-traded partnerships.
“Ripple’s deviation from its routine schedule — especially its June 4 release of $2.2 billion worth of XRP — has caught analysts off guard,” said crypto strategist Julia Sakovich.
EVM Sidechain launch boosts long-term outlook
Ripple’s rollout of the XRPL EVM sidechain on mainnet has been hailed as a strategic leap. Developed in collaboration with Peersyst and Axelar, the new sidechain enables:
- Full Ethereum smart contract compatibility
- Deployment of decentralized applications (dApps) within the XRP ecosystem
- Expanded interoperability across chains
The announcement initially pushed XRP’s price up near $2.20. However, investor focus has since shifted back to Ripple’s token economics and regulatory positioning.
XRP and the broader crypto market
While XRP is down slightly, other top cryptocurrencies remained relatively flat:
- Bitcoin (BTC): $107,793 (+1.25%)
- Ethereum (ETH): $2,450 (-0.21%)
- Solana (SOL): $149 (+0.19%)
- BNB: $658 (+0.80%)
Crypto volatility remains low overall, but the market is closely watching upcoming ETF developments and macroeconomic factors like interest rates and regulation.
Should investors be concerned?
Short term, the price dip isn’t alarming. XRP has surged more than 50% in the past quarter, and its network continues to mature with new infrastructure and institutional partnerships.
That said, unusual escrow activity and ongoing questions about Ripple’s supply control may temper investor enthusiasm until clearer trends emerge.
What happens next?
- ETF momentum: The SEC’s approval of a new crypto ETF including XRP could spark additional institutional interest.
- Escrow transparency: Ripple may need to clarify changes to its monthly rebalancing to maintain trust.
- EVM adoption: Developers will watch closely to see how many projects deploy on XRPL’s new sidechain.
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