XRP Supply Rises 5.5% as XRPL Revenue Drops 81.6%

A 21Shares report covering the first half of 2026 found XRP’s circulating supply increased 5.5% year‑over‑year after monthly escrow releases added about 272 million XRP while re‑locks did not fully offset those releases.

The report compared XRP’s dilution to other crypto payment assets, citing Toncoin at 9.6% and Stellar’s XLM at 8.8%. It noted that Tron generated enough revenue to more than offset its supply growth, producing a net annual gain of 1.4% for holders. The report stated: “One metric where XRP compares favorably is supply dilution.” It also warned: “XRP holders face a net annual drag of 5.5% at current fee levels.” The analysis estimated revenue would need to rise roughly 12,700‑fold to neutralize one year of new supply at prevailing market values.

Despite $159.9 billion in settled value on the ledger in H1 2026, reported XRPL revenue fell to $1.18 million from $6.43 million in H1 2025. The decline was driven mainly by an 80.3% drop in swap pool fees on the ledger’s automated market maker and a 69% fall in NFT royalties. Traditional transaction fees declined 66.3% to $90,800.

Under the XRPL transaction‑cost model, standard transaction fees paid in XRP are permanently destroyed rather than distributed to validators. The report calculated that only 10.6% of the $1.18 million in reported revenue resulted in indirect value to holders through supply reduction. Other revenue categories were paid to liquidity providers and creators.

U.S. spot XRP exchange‑traded products absorbed part of the new supply but did not fully offset it. The report found ETPs covered about 14.8% of the first‑half increase in circulating supply and recorded net selling in two of six months. ETP buying was strongest in May, when inflows covered more than half of new supply. The funds’ $588 million annualized inflow rate equated to roughly one‑seventh of annual net supply.

The report also documented growth in dollar‑pegged liquidity and institutional tokenization on XRPL. Ripple USD (RLUSD) reached $1.56 billion total supply by June 30, with 52% held on XRPL versus about 10% a year earlier, a reported expansion of 1,131%. Aviva Investors launched a tokenized share class of its U.S. Dollar Liquidity Fund on XRPL in July with approval from the Central Bank of Ireland, custody by Komainu and tokenization infrastructure by Licuido. The report cited roughly $4 billion in tokenized assets across more than 500 products on the ledger.

The analysis separated the XRPL as settlement infrastructure from XRP as the native asset that supplies transaction fees and can provide liquidity. It listed potential channels for direct XRP demand — corporate treasury holdings, employee payments, settlement of real‑world transactions by AI agents, and institutional acceptance as collateral or margin — and noted those channels remain unresolved with uncertain scale and timing.