Over 520 Million XRP Removed from Circulation – Here’s Where it Went

Key Developments in XRP Supply Dynamics

Over 520 million XRP tokens have been locked in corporate treasuries, significantly reducing the amount of XRP actively circulating in the market. This structured accumulation is contributing to a tighter available float, fostering institutional confidence, and increasing the potential for a future supply shock. Despite these bullish on-chain signals, the price of XRP has remained range-bound, creating a divergence that analysts suggest is unsustainable in the long term.

A recent analysis by crypto analyst ChartNerd highlights a substantial shift in XRP’s circulating supply. More than 520 million XRP tokens are now reportedly held in corporate and institutional treasuries. This development is being interpreted as a quietly bullish indicator that could strengthen XRP’s long-term price structure and pave the way for a future supply shock.

ChartNerd's Findings: Treasury Holdings Revealed

According to ChartNerd, over 520 million XRP tokens have been effectively removed from active market circulation and are now held in treasury reserves.

ChartNerd’s data indicates that XRPN (Evernorth) is the largest known treasury holder, controlling approximately 473.29 million XRP. Additionally, the sustainable energy firm VivoPower holds around 47.6 million XRP. VivoPower's holdings are particularly noteworthy as the company sources equity from Ripple Labs, further solidifying institutional linkages with XRP’s growing corporate presence. Combined, these holdings represent more than 520 million XRP that are no longer available for open market trading.

Impact of Predictable Supply Management on Institutional Confidence

ChartNerd posits that this increasing concentration of XRP in treasuries directly enhances price stability and bolsters institutional confidence. By allocating substantial amounts of XRP to long-term reserves, these entities contribute to a more predictable supply environment.

This predictability helps mitigate sudden liquidity shocks and the pressure from weak-hand selling, factors that commonly amplify volatility in cryptocurrency markets. ChartNerd observed that this form of structured accumulation is characteristic of more mature asset classes, where large holders prioritize long-term positioning over short-term speculative trading.

The Potential for a Supply Shock Driven by Institutional Demand

Beyond the current treasury holdings, ChartNerd highlights that institutional demand for XRP continues to grow. He cautions that as more corporate buyers and investment funds accumulate XRP, the available float is likely to shrink further. This tightening supply dynamic, coupled with consistent or increasing demand, could eventually lead to a classic supply shock scenario.

Crucially, ChartNerd noted that this projection does not even account for the potential impact of XRP ETFs. The approval or large-scale launch of XRP ETFs could rapidly absorb additional circulating supply.

Despite these positive on-chain developments, XRP’s market price has largely remained within a defined range. ChartNerd pointed out the notable divergence between improving fundamentals and stagnant price action, indicating that XRP has been trading within a broad range for approximately one year.

He believes this disconnect is unlikely to persist indefinitely, stating, "The odd divergence between bullish on-chain developments and the price won’t last forever." This suggests that underlying market pressure is steadily building.

Future Implications for XRP's Price Trajectory

The removal of over 520 million XRP from circulation signifies a fundamental shift in the token’s supply dynamics. With significant treasury acquisitions, increasing institutional interest, and the potential for ETF-driven demand, ChartNerd anticipates that the groundwork is being laid for a substantial long-term price appreciation.

Currently, XRP is still confined to its year-long trading range. However, the underlying market structure is undergoing changes that could significantly influence XRP’s price behavior once this period of consolidation concludes.