A sudden disruption on the XRP Ledger drew unusual on-chain activity this week when BitGo’s XRP wallet temporarily ran out of funds, causing a series of failed transactions that overwhelmed the network. The incident, described by crypto commentator Skipper (@skipper_xrp) on X, comes after months of discussions about diminishing XRP reserves on exchanges and whether a tightening supply could influence future price movements. BREAKING: TOP CRYPTO EXCHANGE RUNS OUT OF XRP #XRP Ledger went crazy after BitGo's wallet hit zero, flooding the network with failed payments and turning the blockchain into a spam factory for hours, before fixing the mistake with an XRP deposit. The issue started when… pic.twitter.com/KGRwzdCUzf — Skipper | XRPL (@skipper_xrp) November 12, 2025 A Wallet Error Turns Chaotic According to his report, the issue began when BitGo’s automated system attempted to activate new XRP accounts. Each activation requires a 1 XRP reserve fee to establish a wallet on the network. When BitGo’s wallet balance dropped to zero, the system failed to halt its process. Instead, it repeatedly attempted transactions that could not be funded. The loop of rejected payments soon filled the ledger with thousands of “UNFUNDED PAYMENT” entries. For several hours, these transactions congested the network’s mempool, leading some users to call the XRP Ledger a “spam factory.” Although the network itself remained operational, the excess traffic disrupted transaction visibility and slowed confirmations for some users. BitGo resolved the issue by depositing 1,048 XRP into the affected wallet, stabilizing the automated account creation process. Once the balance was restored, the wave of failed payments subsided, and normal ledger activity resumed. Shrinking Exchange Supply Although BitGo’s wallet problem was a contained technical issue, it coincided with wider discussion in the XRP community about a possible supply shock. In recent months, Exchange data has shown smaller XRP balances , which some traders interpret as a sign that more tokens are moving into private wallets or long-term custody. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 If that trend continues, it could limit the amount of XRP available for daily trading and create conditions similar to a supply shock . When liquidity on crypto exchanges contracts, even modest increases in buying pressure can have a stronger impact on asset prices. Is XRP Experiencing a Supply Shock? The XRP Ledger stabilized quickly after BitGo replenished its balance by 1,048 XRP, ending the wave of failed transactions. However, traders are still cautious. While XRP has not experienced a supply shock, many experts believe it is inevitable , and BitGo’s empty wallet has fueled that belief. If that scenario unfolds, XRP could experience upward price pressure as market makers adjust to tighter inventories. Still, current movements remain within normal market ranges, and definitive evidence of a lasting supply shortage has not emerged. 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 advised to conduct thorough 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 X , Facebook , Telegram , and Google News The post Top Crypto Exchange Runs Out of XRP. Here’s What Happened appeared first on Times Tabloid .
