Key Takeaways
- 21Shares reported that XRP’s circulating supply grew 5.5% year over year through escrow releases.
- The firm said XRPL revenue fell 81.6% year over year to $1.18 million.
- RLUSD and tokenized funds are building an institutional base.
XRP Supply Dilution Outpaces Fee Burns
XRP’s circulating supply expanded through monthly escrow releases that exceeded the amount returned to escrow. Comparing XRP with other crypto payment assets, an Aug. 19 analysis from 21Shares stated: “One metric where XRP compares favorably is supply dilution. Circulating supply grew 5.5% year-on-year through escrow releases and re-locks, driven by approximately 272 million XRP added monthly.”
According to 21Shares, XRP dilutes its holders less than Toncoin, which runs at 9.6% a year, and Stellar’s XLM at 8.8%. Only Tron generated enough revenue to offset its supply growth, leaving holders a net positive return of 1.4% a year. The report added:
“XRP holders face a net annual drag of 5.5% at current fee levels.”
The firm estimated that revenue would need to rise approximately 12,700-fold to offset one year of new supply at current market values. It also reported that U.S. spot XRP exchange-traded products (ETPs) absorbed only 14.8% of the first-half increase in circulating supply and recorded net selling during two of six months.
According to the report, ETP buying covered more than half of new supply during May, the strongest month on record for those funds. Their $588 million annualized inflow rate still amounts to roughly one-seventh of annual net supply.
XRP Demand Still Needs Direct Use
Broader use could create demand beyond transaction fees if XRP gains a larger role in treasury management, payments, and liquidity. Anodos Finance has echoed Ripple’s earlier “north star” description of XRP, citing the asset’s use for corporate holdings and employee payments.
Ripple CEO Brad Garlinghouse has separately identified an opportunity within $16 trillion in annual payments and clearing activity, although digital assets currently represent a minimal share of those flows. Converting even part of that existing activity into XRP-based settlement could create demand, but the scale and timing remain uncertain.
Another potential channel involves AI agents completing real-world transactions, but sustained value would depend on useful settlement activity rather than transaction counts alone. Direct institutional acceptance of XRP as collateral or margin remains the clearest unresolved catalyst.
XRPL Revenue Contracts Despite Settlement Volume
The network settled $159.9 billion during the first half of 2026, but its reported revenue declined sharply, 21Shares noted, adding:
“H1 2026 revenue fell 81.6% year-on-year, from $6.43 million to $1.18 million. The bulk of the decline came from two sources: swap pool fees on the XRPL’s automated market maker, which fell 80.3%, and NFT royalties, which fell 69%.”
Traditional transaction fees fell 66.3% to $90,800. Under the ledger’s transaction-cost structure, XRP paid for standard transactions is permanently destroyed instead of being distributed to validators.
Only 10.6% of the reported $1.18 million reached holders indirectly through supply reduction, according to 21Shares. Other revenue categories went to liquidity providers and creators. The distinction is significant since the XRP Ledger and its native asset perform separate functions: XRPL provides settlement infrastructure, while XRP supplies transaction fees and potential liquidity.
RLUSD Growth Builds Institutional Liquidity
The stablecoin Ripple USD, or RLUSD, supplied the strongest growth signal during the same period. According to 21Shares, its total supply reached $1.56 billion by June 30, with 52% held on XRPL, compared with approximately 10% one year earlier. The ledger’s stablecoin base consequently expanded 1,131%, the firm said, creating deeper dollar-denominated liquidity for tokenized assets and decentralized finance.
Institutional activity also advanced when Aviva Investors launched a tokenized share class of its U.S. Dollar Liquidity Fund on XRPL in July. The Central Bank of Ireland approved the structure, while Komainu provided custody and Licuido supplied the tokenization infrastructure.
The rollout marked Aviva’s first tokenized fund product and followed earlier XRPL deployments involving abrdn, Ondo Finance, and Societe Generale. Separate ecosystem data showed approximately $4 billion in tokenized assets across more than 500 products, alongside continued XRP exchange-traded fund inflows and increased wallet creation.
