- Around 44.4% of XRP is locked in Ripple’s escrow, reserves, and co-founders’ holdings, leaving limited liquidity for the market.
- ETFs like Purpose and 3iQ already hold sizable XRP stakes, and future entry by major U.S. banks could further restrict circulating supply.
- With retail controlling only ~15% of supply, analysts warn of a potential supply shock if institutional demand accelerates through ETFs or bank adoption.
Prominent crypto trader 24hrscrypto has sounded the alarm on what he describes as a growing XRP supply crunch. According to his latest analysis, nearly 44.4% of XRP’s total supply is already accounted for between Ripple’s escrow holdings, Ripple’s liquid reserves, and the personal allocations of co-founders Chris Larsen and Arthur Britto.
This concentration leaves less available liquidity for institutions and retail investors alike. According to him, Ripple currently controls 37.3 billion XRP in escrow and 3.5 billion in liquid form, while Larsen and Britto together hold 3.6 billion XRP. When combined, these allocations represent close to half of the entire supply, creating what analysts see as a tightening float.
Institutional Holdings on the Rise
The trader also highlighted the growing role of institutional accumulation in absorbing what remains of XRP’s circulating supply. Canadian investment firms Purpose ETF and 3iQ already hold significant positions, with 29.6 million XRP and 45 million XRP, respectively. At current prices, these holdings translate into nearly $226 million in combined exposure.
Also Read: Updated XRP Ranking Ladder – Where Are You?
People don’t realize how little XRP is left.
Ripple escrow: 37.3B XRP (37.3%)
Ripple liquid: 3.5B (3.5%)
Chris Larsen: 2.3B (2.3%)
Arthur Britto: 1.3B (1.3%)
That’s nearly 44.4% of supply already accounted for…
..and then you have look at institutions.
Purpose ETF already… pic.twitter.com/ExyK7OUEAa
— 𝟸𝟺𝙷𝚁𝚂𝙲𝚁𝚈𝙿𝚃𝙾 (@24hrscrypto1) September 22, 2025
Crucially, 24hrscrypto pointed out that these entities are relatively small players compared to U.S. financial giants. The eventual entry of banks such as JPMorgan, Wells Fargo, and Goldman Sachs could see billions more XRP permanently moved into cold storage, further reducing available supply.
Based on his estimates, retail investors may control only about 15% of the total supply. This limited access, coupled with ongoing institutional positioning, could leave retail holders competing over a shrinking pool of liquid XRP.
The dynamic has already sparked debates within the community about the potential for a supply shock if ETF approvals or large-scale bank adoption drive demand higher.
Market Context
At the time of his post, XRP was trading at $2.81, consolidating near a key psychological threshold. 24hrscrypto hinted that this price point may appear low in hindsight if supply continues to vanish from open markets.
His analysis echoes broader narratives in the XRP community that frame the token not merely as a speculative asset but as a scarce resource with mounting institutional demand.
Also Read: XRP Drops to 4th Position – Here’s Why the Price is Down Today
