Supply Overview and On-Chain Context
The images attached to Nguyen’s post provide clear supply metrics. XRP’s maximum supply remains fixed at 100 billion, with a circulating supply of approximately 64.66 billion. The escrow balance stands at 35,308,689,446 XRP, maintaining a significant share of total supply held outside of circulation.
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XRP SUPPLY SHORTAGE IS COMING AFTER ALL THE SPOT XRP ETFS APPROVAL AND LAUNCHING… pic.twitter.com/RmhCfxHGhe
— Kenny Nguyen (@mrnguyen007) October 8, 2025
Additionally, around 14 million XRP have been permanently burned, while the total available supply is listed just under the full cap at 99,985,807,478 XRP. Active accounts are recorded at over 6.9 million, confirming consistent network participation.
These figures reinforce the central point of the post: any surge in demand, particularly via spot ETF products, would interact with a supply structure still heavily influenced by escrow management. With more than one‑third of supply locked in time‑based releases, how those funds enter the market remains a critical factor.
Debate on Liquidity and Utility
While Nguyen emphasizes the possibility of a supply squeeze if ETFs attract significant institutional interest, the counterpoint presented raises a different concern.
The argument is that if large tranches of XRP continue to be released from escrow and sold into the market, the resulting increase in tradable supply could pressure liquidity and weaken perceived scarcity.
Under that scenario, the risk cited is that users and institutions may shift toward RLUSD for transactional purposes, diminishing XRP’s role in settlement processes.
We are on X, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) June 15, 2025
This perspective is not a claim of disappearance but a caution about relevance. The focus is on how capital and liquidity may realign if market participants perceive XRP as more suited for holding than utility, especially if a stable alternative such as RLUSD becomes preferred for transfers and corporate use.
ETF Demand Versus Escrow Supply
The key uncertainty raised in the post is whether institutional demand through ETFs would exceed any offsetting supply introduced through escrow releases. If demand outpaces supply, the market could experience tighter liquidity and reduced availability, supporting the idea of a constrained environment.
However, if significant volumes from escrow continue to enter exchanges, potential sell‑side pressure could temper any reduction in circulating supply.
This is a structural discussion rather than speculation. The outcome depends on how custodial entities manage releases, how ETF custodians accumulate holdings, and whether institutional frameworks prioritize XRP for liquidity purposes or shift toward RLUSD for operational stability.