XRP Gains 6% Amidst Japan’s Crypto Tax Cut, Escrowed Funds
Ripple, XRPUSD, surged by 6.27% in the last 24 hours, outperforming the broader crypto market as investors sentiment improved following Japan’s crypto tax cut and supply tightening.
XRP is hovering around $1.99 with more than a 59% spike in trading volume in the last 24 hours across the crypto market. With $120 billion in XRP market capitalisation on Friday, trading data showed volume climbed by $2.71 billion on the day.
On the technical side, XRP defended $1.80 support and broke above $1.90 on Tuesday. Its positive price movement combines technical momentum, ETF-driven supply crunch, and Japan’s pro-crypto pivot.
Key drivers of the new momentum includes institutional ETF inflows, technical breakout above $1.90 support, and Japan’s crypto tax reforms amidst Ripple moves to tighten supply.
XRP spot ETFs saw $1.16 billion inflows over 30 days, locking 473 million XRP in custodial wallets while crypto tax was cut from 55% to 20%, boosting retail/institutional participation.
Ripple released 1 billion XRP from escrow, immediately re-locking 700 million, or 70%, and allocating 300 million for liquidity. Unused portions will return to escrow, per standard protocol.
ETFs now hold about 0.68% of XRP’s total supply, signaling long-term confidence. Boosting investor confidence includes Japan’s 2026 tax reforms, which slashed crypto taxes to 20% from 55% and approved the country’s first XRP ETF, accelerating adoption.
Analysts hinted that Japan accounts for approximately 18% of XRP’s ODL corridor volume, saying that lower taxes and ETF access could funnel billions in retail/enterprise capital into XRP.
According to trading details, XRP saw $1.16 billion in net inflows in Nov-Dec 2025, contrasting with Bitcoin/ETH outflows, reflecting institutions positioning for XRP’s utility in cross-border payments. This is bullish for XRP, analysts said, signalling long-term confidence in its compliance-ready infrastructure.
XRP network activity drew strong attention after a major whale transaction unfolded alongside Ripple’s scheduled escrow process, triggering renewed discussion around supply movement and large holder positioning.
Blockchain records show a successful “Escrow Create” transaction executed by a Ripple-linked account, locking 500,000,000 XRP until November 1, 2028.
The transaction was signed using a multi-signature setup involving four signers and recorded at ledger index 101,273,392, confirming both the authenticity and enforceability of the lock-up.
The escrowed funds cannot be accessed or moved until the specified release date, providing a three-year window during which this supply is effectively removed from circulation. By locking a sizable tranche of XRP under clear, verifiable conditions, Ripple reduces uncertainty around potential sudden supply increases.
While the escrow does not directly affect XRP’s price in the short term, analysts suggest it strengthens the broader narrative around supply discipline and transparency. # XRP Gains 6% Amidst Japan’s Crypto Tax Cut, Escrowed Funds Foreign Currency Inflow into Nigerian Market Sinks by 95%
