The circulating supply of $XRP has increased due to monthly releases from escrow that exceeded the amount returned to escrow. Comparing $XRP to other crypto payment assets, a 21Shares analysis from August 19 notes: "One metric where $XRP looks favorable is supply dilution. The circulating supply of $XRP increased 5.5% year-over-year from escrow releases and re-locks, aided by a monthly top-up of roughly 272 million $XRP."
According to 21Shares, $XRP results in less holder dilution than Toncoin (9.6% annually) and Stellar's XLM (8.8%). Only Tron generated sufficient revenue to offset its supply growth, delivering holders a net positive yield of 1.4% annually. The report also noted:
"At current fee levels, $XRP holders face a net annual decline in asset value of 5.5%."
The firm estimates that to offset the annual supply increase at current market prices, revenue would need to grow roughly 12,700 times. It is also reported that spot U.S. exchange-traded products (ETPs) on $XRP absorbed only 14.8% of the H1 supply increase and recorded net selling for two of the six months.
According to the report, ETP purchases covered over half of the new supply in May—the strongest month on record for these funds. Their $588 million annual inflow still represents roughly one-seventh of the net annual supply.
$XRP Demand Still Relies on Direct Use Cases
Broader adoption could create demand beyond transaction fees if $XRP secures a more significant role in treasury management, payments, and liquidity provision. Anodos Finance echoed Ripple's prior description of $XRP as a "lodestar," citing the asset's use for corporate treasury and employee payouts.
Ripple CEO Brad Garlinghouse separately pointed to opportunities within $16 trillion in annual payments and clearing activity, though digital assets currently represent a minimal share of these flows. Transitioning even a fraction of this existing activity to $XRP-based settlement could create demand, but the scale and timing remain uncertain.
Another potential channel involves AI agents conducting real transactions, but sustainable value would depend on genuine settlement activity, not just transaction count. Direct recognition of $XRP by institutional investors as collateral or margin remains the most obvious unresolved catalyst.
XRPL Revenue Declines Despite Settlement Volume
$159.9 billion was settled through the network in H1 2026, yet, as 21Shares notes, the network's reported revenue sharply declined, adding:
"H1 2026 revenue fell 81.6% year-over-year—from $6.43 million to $1.18 million. The bulk of this decline came from two line items: fees from the XRPL automated market maker's swap pool, which fell 80.3%, and NFT royalties, down 69%."
Traditional transaction fees declined 66.3% to $90,800. In line with the ledger's transaction cost structure, $XRP paid for standard transactions is subject to final destruction, not distributed to validators.
According to 21Shares, only 10.6% of the reported $1.18 million accrued indirectly to holders via supply reduction. The remaining revenue categories went to liquidity providers and creators. This distinction is significant as the $XRP ledger and its native asset serve different functions: XRPL provides settlement infrastructure, while $XRP covers transaction fees and potential liquidity.
$RLUSD Growth Strengthens Institutional Liquidity
Ripple USD, or $RLUSD, showed the strongest growth signal over the same period. By June 30, its total supply reached $1.56 billion, with 52% on XRPL compared to roughly 10% a year earlier, 21Shares reported. As a result, the stablecoin base on the ledger expanded 1,131%, providing deeper U.S. dollar liquidity for tokenized assets and decentralized finance.
Institutional activity also intensified 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 asset custody and Licuido supplied tokenization infrastructure.
This launch marked Aviva's first tokenized fund product and followed earlier XRPL implementations involving abrdn, Ondo Finance, and Societe Generale. Separate ecosystem data showed tokenized assets across over 500 products amounted to approximately $4 billion, alongside continued inflows into $XRP exchange-traded funds and rising wallet creation.
end-content
