13% of XRP Supply Could Be Taken Off the Market. Here’s Why

Concerns are growing within the XRP community about a possible reduction in available supply, as new projects target large allocations of the token for staking and yield-bearing ￰0￱ Asset Investor (DAI), a well-known voice in the community, recently highlighted figures from both Axelar Network and Flare that, if realized, could remove billions of XRP from ￰1￱ Targets from Axelar and Flare Axelar Network recently introduced mXRP, a yield-generating asset that runs on both the XRP Ledger and its EVM ￰2￱ an interview with Crypto in America , Axelar Foundation co-founder Georgios Vlachos explained that the team measures success primarily by assets under ￰3￱ @axelar 's goal is to lock up 5% of the XRP circulating supply and @FlareNetworks 's goal is to lock up 5 Billion XRP.

That's just two ￰4￱ you say supply shock?? ￰5￱ — Digital Asset Investor (@digitalassetbuy) September 23, 2025 According to Vlachos, their goal is to reach $10 billion in XRP locked within the ￰6￱ figure translates to about 5% of the circulating supply. Similarly, Flare’s co-founder, Hugo Philion, set out his vision during an appearance on the Paul Barron ￰7￱ asked about the expected growth of FXRP, Philion stated that he hopes to see 5 billion XRP secured on the Flare network by mid-2026. Combined, the objectives from both projects amount to roughly 8 billion tokens, which equate to approximately 13% of the current circulating ￰8￱ Progress Toward the Targets While the long-term goals are substantial, the actual progress so far is ￰9￱ shows that the mXRP product, which was formally launched at XRP Seoul 2025, currently holds about 3.851 million ￰10￱ this amount, 2.786 million resides on the EVM Sidechain and the remainder on the XRP ￰11￱ compared with the $10 billion target, this represents only about 0.006% of the total circulating supply.

Nonetheless, since mXRP has only recently gone live, advocates argue that the project still has significant time to ￰12￱ Exchange Reserves DAI’s warning about a possible supply crunch comes at a time when XRP balances on major exchanges appear to be decreasing ￰13￱ provides one ￰14￱ June, the exchange held around 970 million XRP spread across 52 cold ￰15￱ September 20, this figure had dropped dramatically to just 32 million XRP in two ￰16￱ sudden reduction has raised questions within the community, though Coinbase has not offered any public explanation for the ￰17￱ are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Concentration of XRP Holdings Beyond exchange balances, a large proportion of XRP is already locked or controlled by key ￰18￱ retains control over 37.3 billion XRP in escrow and an additional 3.5 billion in liquid form.

Co-founder Chris Larsen holds 2.3 billion, while Arthur Britto is estimated to control about 1.3 billion. Altogether, these allocations account for nearly 44.4% of the total token ￰19￱ interest is also beginning to ￰20￱ instance, Purpose ETF has disclosed holdings of 29.6 million XRP, while Canadian firm 3iQ manages approximately 45 ￰21￱ 24HrsCrypto recently estimated that retail investors may collectively own no more than 15% of the circulating ￰22￱ to 24HrsCrypto , the market could see even greater supply reductions once large financial institutions enter the ￰23￱ such as JPMorgan, Wells Fargo, and Goldman Sachs are frequently mentioned as potential future ￰24￱ addition, speculation continues about the possible approval of spot XRP exchange-traded funds later this year, which could result in further tokens being moved into long-term ￰25￱ Axelar’s and Flare’s current holdings remain small relative to their ambitious goals, their stated objectives combined with declining exchange balances and institutional accumulation have intensified community discussions about a potential supply ￰26￱ the projects achieve their targets, as much as 13% of circulating XRP could be removed from open markets, significantly reshaping the asset’s liquidity ￰27￱ : This content is meant to inform and should not be considered financial ￰28￱ views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s ￰29￱ are urged to do in-depth research before making any investment ￰30￱ action taken by the reader is strictly at their own ￰31￱ Tabloid is not responsible for any financial ￰32￱ us on Twitter , Facebook , Telegram , and Google News