XRP Supply at Risk of Centralization, Top Analyst Warns

A recent post from well-known crypto commentator “All Things XRP” raises concerns regarding the long-term distribution of XRP’s tradable supply, cautioning that it may become concentrated in the hands of a few powerful entities. The commentator outlines a detailed scenario where institutional accumulation, fueled by predictable liquidity releases and retail sell-offs, could gradually consolidate XRP ownership. According to the tweet, Ripple currently manages approximately 42% of the total XRP supply, which includes 4.79 billion XRP held directly and 37.43 billion XRP locked in escrow. The escrow mechanism releases 1 billion XRP monthly, a process intended to provide market stability and supply for partnerships and institutional liquidity. ⚠️ TAKE NOTE: XRP’s tradable supply could end up in the hands of just a few powerful entities. Retail investors cashing out may pave the way. Here’s how it unfolds: 👉 Ripple manages 42% of XRP (4.79 billion direct, 37.43 billion in escrow) to support market stability 👉… — All Things XRP (@XRP_investing) April 19, 2025 From these monthly releases, typically between 700 and 900 million XRP is re-entered into escrow, while the remaining 100 to 300 million XRP is allowed to circulate. Institutional players, including exchanges, financial firms, and market makers, frequently acquire these circulating tokens. Over time, this creates an environment where a significant share of liquid XRP is transferred from retail investors to larger entities. Institutional Accumulation and the Bitcoin Comparison “All Things XRP” draws a parallel with Bitcoin’s current distribution model. According to the tweet, just 2% of all Bitcoin wallets control 71% of the total BTC supply. This consolidation is attributed to early adopters and continuous institutional acquisition through financial instruments such as exchange-traded funds (ETFs) and over-the-counter (OTC) deals. The post implies that XRP could follow a similar pattern, especially as it becomes more accessible to institutional buyers through consistent monthly supply injections. While XRP’s circulating supply currently stands at approximately 57.76 billion tokens and is accessible to retail and institutional participants, the post argues that retail behavior helps shape long-term ownership. During market rallies, retail investors often liquidate holdings for short-term profits. When this behavior coincides with institutional demand, it sets up a scenario in which larger entities gradually absorb more of the available XRP supply. The commentator emphasizes that monthly escrow unlock is a reliable channel through which institutions can steadily build positions in XRP. As larger players absorb and hold these tokens, the proportion of XRP available for public trading could shrink with time. In a more extreme outcome, the tweet suggests that “a few large players could amass nearly all tradable XRP.” We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Retail Participation and Long-Term Ecosystem Impact Despite the risk of supply centralization, “All Things XRP” acknowledges the essential role retail investors continue to play in the XRP ecosystem. The tweet advises retail holders to consider strategic, long-term holding approaches rather than engaging in frequent sell-offs, arguing that “market dynamics favor the patient.” The implication is that individual investors who maintain their positions could benefit from future utility and demand, while contributing to a more decentralized ownership structure. The message concludes with a call for foresight and deliberate action. As XRP’s market matures and becomes increasingly shaped by institutional forces, the tweet urges retail participants to understand the implications of their trading behavior on the broader ecosystem. The analysis underscores that the long-term composition of XRP holders may depend not only on Ripple’s distribution practices but also on the choices made by individual investors in the months and years ahead. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post XRP Supply at Risk of Centralization, Top Analyst Warns appeared first on Times Tabloid .

Source: TimesTabloid