- Over 85% of XRP supply is locked, lost, or dormant.
- Expert reveals XRP’s actual liquidity far lower than expected.
- DeFi, escrow, and lost keys tighten XRP’s available supply.
Blockchain engineer Vincent Van Code has released a revealing analysis of XRP’s real circulating supply, showing that over 85% of the token’s total 100 billion units are either locked, lost, or held in dormant wallets. His findings challenge common perceptions about the amount of XRP truly available for utility in payments, settlements, and liquidity.
According to Van Code, Ripple controls around 35.9 billion XRP in escrow. Although 1 billion tokens are released monthly, the company typically relocks nearly 800 million back into escrow each time. This limits the actual inflow of XRP into the open market.
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In addition to escrowed tokens, Ripple holds 4.9 billion XRP outside of it. These tokens are set aside for strategic initiatives like acquisitions, incentives, and partnerships. As a result, they are excluded from the available supply for public or institutional use.
Van Code also estimates that 5 to 8 billion XRP are permanently inaccessible due to lost private keys and abandoned early wallets. Much like Bitcoin, XRP has its share of dormant tokens that are unlikely to re-enter the ecosystem.
Dormant Wallets and DeFi Commitments Tighten XRP Liquidity
Institutional investors and early adopters reportedly hold between 20 and 25 billion XRP. These wallets remain mostly inactive, contributing to the ongoing supply constraints. Such holdings are often long-term and rarely impact daily liquidity.
Moreover, the rise of decentralized finance on the XRP Ledger is locking up more tokens. Current data from XRPScan shows over 12 million XRP committed to automated market maker pools. This trend is expected to grow as DeFi applications expand across the network.
Taking all factors into account—Ripple’s escrow and strategic reserves, permanently lost tokens, dormant investor wallets, and DeFi lockups—Van Code concludes that only 12 to 15 billion XRP is currently available for actual use. That represents just 12% to 15% of the total supply.
Conclusion
Van Code’s analysis indicates that XRP’s liquid supply is far smaller than commonly believed. As utility demand grows, this limited float could lead to noticeable supply pressure across markets.
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