A fresh debate over how crypto market caps are calculated has reignited discussion around Ripple’s escrowed XRP holdings, following a viral post comparing XRP’s locked supply to Bitcoin’s dormant coins.

The conversation began after crypto analyst Vincent Van Code argued that XRP’s market capitalization is misleadingly calculated based only on its 65 billion circulating tokens, excluding the 35 billion held in escrow. He contrasted this with Bitcoin, where the full 21 million total supply is counted—despite over one million BTC being held in Satoshi Nakamoto’s wallet and millions more lost or stored long term.

Van Code claimed that if Bitcoin’s inactive coins were excluded, its market cap could fall by as much as 15 percent, calling current metrics “a pointless lie you were programmed to think is important by the likes of Binance.” His comments sparked debate over whether XRP’s escrowed tokens should be treated similarly to Bitcoin’s inaccessible coins.

Responding to the thread, Ripple CTO David Schwartz clarified that while XRP in escrow remains locked and cannot circulate until release, Ripple could technically sell the rights to receive those tokens or transfer ownership of the escrow accounts themselves. “Ripple could sell the right to receive the tokens released from escrow or even sell the accounts the escrows complete into,” Schwartz said, emphasizing that the XRP “still can’t circulate until their release dates.”

Ripple currently holds about 35 billion XRP in escrow across over 14,000 contracts, a mechanism designed to manage supply and prevent large market inflows. The total XRP supply stands at 100 billion tokens, with 65 billion in active circulation.

Schwartz’s statement adds new nuance to how investors interpret Ripple’s reserves—suggesting that while locked tokens are non-liquid, their future claims could hold marketable value.

At press time, XRP traded around $2.65, with a 2% gain in the past 24 hour.

Ripple Deepens Institutional Reach

Ripple has stepped up its institutional ambitions with a series of high-value deals and financial initiatives aimed at deepening its role in global markets. The company recently completed a $1.25 billion acquisition of prime broker Hidden Road and launched Ripple Prime, an institutional-grade liquidity and custody platform targeting professional investors.

Earlier this month, Ripple also acquired GTreasury in a $1 billion deal, marking its entry into the multi-trillion-dollar repo and corporate treasury market. The acquisition brings Ripple’s blockchain settlement tools into real-world treasury operations, strengthening its position among enterprise clients.

Alongside these moves, Ripple unveiled plans for a $1 billion internal treasury to accumulate XRP and manage long-term liquidity across its ecosystem. Executives say the plan will allow Ripple to support institutional demand and stabilize supply without disrupting the market.