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 products. Digital 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 circulation. Ambitious Targets from Axelar and Flare Axelar Network recently introduced mXRP, a yield-generating asset that runs on both the XRP Ledger and its EVM Sidechain. In an interview with Crypto in America , Axelar Foundation co-founder Georgios Vlachos explained that the team measures success primarily by assets under management. So @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 companies. Can you say supply shock?? pic.twitter.com/KBDahqMxfx — Digital Asset Investor (@digitalassetbuy) September 23, 2025 According to Vlachos, their goal is to reach $10 billion in XRP locked within the system. This 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 Show. When 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 supply. Current Progress Toward the Targets While the long-term goals are substantial, the actual progress so far is modest. Data shows that the mXRP product, which was formally launched at XRP Seoul 2025, currently holds about 3.851 million XRP. Of this amount, 2.786 million resides on the EVM Sidechain and the remainder on the XRP Ledger. When 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 expand. Shrinking Exchange Reserves DAI’s warning about a possible supply crunch comes at a time when XRP balances on major exchanges appear to be decreasing sharply. Coinbase provides one example. In June, the exchange held around 970 million XRP spread across 52 cold wallets. By September 20, this figure had dropped dramatically to just 32 million XRP in two wallets. The sudden reduction has raised questions within the community, though Coinbase has not offered any public explanation for the shift. We 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 entities. Ripple 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 supply. Institutional interest is also beginning to emerge. For instance, Purpose ETF has disclosed holdings of 29.6 million XRP, while Canadian firm 3iQ manages approximately 45 million. Analyst 24HrsCrypto recently estimated that retail investors may collectively own no more than 15% of the circulating supply. According to 24HrsCrypto , the market could see even greater supply reductions once large financial institutions enter the space. Banks such as JPMorgan, Wells Fargo, and Goldman Sachs are frequently mentioned as potential future participants. In 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 storage. Although 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 squeeze. If the projects achieve their targets, as much as 13% of circulating XRP could be removed from open markets, significantly reshaping the asset’s liquidity profile. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post 13% of XRP Supply Could Be Taken Off the Market. Here’s Why appeared first on Times Tabloid .
