{"id":77197,"date":"2026-08-24T01:40:32","date_gmt":"2026-08-24T01:40:32","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/xrp-faces-5-5-annual-supply-dilution-as-xrpl-revenue-falls-81-6\/"},"modified":"2026-08-24T01:40:32","modified_gmt":"2026-08-24T01:40:32","slug":"xrp-faces-5-5-annual-supply-dilution-as-xrpl-revenue-falls-81-6","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/xrp-faces-5-5-annual-supply-dilution-as-xrpl-revenue-falls-81-6\/","title":{"rendered":"XRP Faces 5.5% Annual Supply Dilution as XRPL Revenue Falls 81.6%"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">21Shares reported that XRP\u2019s circulating supply grew 5.5% year over year through escrow releases.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The firm said XRPL revenue fell 81.6% year over year to $1.18 million.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">RLUSD and tokenized funds are building an institutional base.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>XRP Supply Dilution Outpaces Fee Burns<\/h2>\n<p>XRP\u2019s circulating supply expanded through monthly escrow releases that exceeded the amount returned to escrow. Comparing XRP with other crypto payment assets, an <a href=\"https:\/\/www.21shares.com\/en-eu\/insights\/insights-xrp-earnings-analysis-2026\" target=\"_blank\" rel=\"noopener noreferrer\">Aug. 19 analysis from 21Shares<\/a> stated: \u201cOne 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.\u201d<\/p>\n<p>According to 21Shares, XRP dilutes its holders less than Toncoin, which runs at 9.6% a year, and Stellar\u2019s 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:<\/p>\n<blockquote>\n<p>\u201cXRP holders face a net annual drag of 5.5% at current fee levels.\u201d<\/p>\n<\/blockquote>\n<p>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.<\/p>\n<p>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.<\/p>\n<figure id=\"attachment_841728\" aria-describedby=\"caption-attachment-841728\" style=\"width:1104px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-841728\" class=\"wp-caption-text\">XRP ETP net flows covered a growing share of new supply during the first half of 2026. Source: 21Shares, Glassnode, XRPL API.<\/figcaption><\/figure>\n<h2>XRP Demand Still Needs Direct Use<\/h2>\n<p>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\u2019s earlier <a href=\"https:\/\/news.bitcoin.com\/xrp-north-star-thesis-gains-momentum-beyond-ripple\/\">\u201cnorth star\u201d description of XRP<\/a>, citing the asset\u2019s use for corporate holdings and employee payments.<\/p>\n<p>Ripple CEO Brad Garlinghouse has separately identified an opportunity within <a href=\"https:\/\/news.bitcoin.com\/ripple-ceo-sees-massive-xrp-opportunity-in-16-trillion-payment-flows\/\">$16 trillion in annual payments and clearing activity<\/a>, 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.<\/p>\n<p>Another potential channel involves <a href=\"https:\/\/news.bitcoin.com\/featured\/new-phase-for-xrp-could-emerge-as-ai-agents-move-toward-real-spending\/\">AI agents completing real-world transactions<\/a>, 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.<\/p>\n<h2>XRPL Revenue Contracts Despite Settlement Volume<\/h2>\n<p>The network settled $159.9 billion during the first half of 2026, but its reported revenue declined sharply, 21Shares noted, adding:<\/p>\n<blockquote>\n<p>\u201cH1 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\u2019s automated market maker, which fell 80.3%, and NFT royalties, which fell 69%.\u201d<\/p>\n<\/blockquote>\n<p>Traditional transaction fees fell 66.3% to $90,800. Under the ledger\u2019s <a href=\"https:\/\/xrpl.org\/docs\/concepts\/transactions\/transaction-cost\" target=\"_blank\" rel=\"noopener noreferrer\">transaction-cost structure<\/a>, XRP paid for standard transactions is permanently destroyed instead of being distributed to validators.<\/p>\n<p>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 <a href=\"https:\/\/www.bitcoin.com\/get-started\/blockchain-tech\/layer-1s\/what-is-ripple-xrp-ledger\/\" target=\"_blank\" rel=\"noopener noreferrer\">XRP Ledger and its native asset<\/a> perform separate functions: XRPL provides settlement infrastructure, while XRP supplies transaction fees and potential liquidity.<\/p>\n<h2>RLUSD Growth Builds Institutional Liquidity<\/h2>\n<p>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\u2019s stablecoin base consequently expanded 1,131%, the firm said, creating deeper dollar-denominated liquidity for tokenized assets and decentralized finance.<\/p>\n<p>Institutional activity also advanced when <a href=\"https:\/\/www.avivainvestors.com\/en-lu\/about\/company-news\/2026\/07\/aviva-investors-launches-tokenised-share-class-for-usd-liquidity-fund\/\" target=\"_blank\" rel=\"noopener noreferrer\">Aviva Investors launched a tokenized share class<\/a> 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.<\/p>\n<p>The rollout marked Aviva\u2019s first tokenized fund product and followed earlier XRPL deployments involving abrdn, Ondo Finance, and Societe Generale. Separate ecosystem data showed <a href=\"https:\/\/news.bitcoin.com\/xrp-sees-triple-adoption-boost-as-tokenized-assets-reach-4-billion-etf-demand-stays-strong\/\">approximately $4 billion in tokenized assets<\/a> across more than 500 products, alongside continued XRP exchange-traded fund inflows and increased wallet creation.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/market-updates\/xrp-faces-5-5-annual-supply-dilution-as-xrpl-revenue-falls-81-6\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways 21Shares reported that XRP\u2019s 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\u2019s circulating supply expanded [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":77198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77197"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=77197"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/77197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/77198"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=77197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=77197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=77197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}