XRP Faces 5.5% Annual Supply Dilution as XRPL Revenue Falls 81.6%

XRP’s circulating supply grew 5.5% year over year, creating dilution that fee burns come nowhere near offsetting, according to 21Shares. XRPL revenue fell 81.6% as stablecoin balances and institutional tokenization expanded on the network.

According to 21Shares, XRP dilutes its holders less than Toncoin, which runs at 9.6% a year, and Stellar’s XLM at 8.8%. Only Tron generated enough revenue to offset its supply growth, leaving holders a net positive return of 1.4% a year. The report added:

“XRP holders face a net annual drag of 5.5% at current fee levels.”

The firm estimated that revenue would need to rise approximately 12,700-fold to offset one year of new supply at current market values. It also reported that U.S. spot XRP exchange-traded products (ETPs) absorbed only 14.8% of the first-half increase in circulating supply and recorded net selling during two of six months.

According to the report, ETP buying covered more than half of new supply during May, the strongest month on record for those funds. Their $588 million annualized inflow rate still amounts to roughly one-seventh of annual net supply.

The network settled $159.9 billion during the first half of 2026, but its reported revenue declined sharply, 21Shares noted, adding:

“H1 2026 revenue fell 81.6% year-on-year, from $6.43 million to $1.18 million. The bulk of the decline came from two sources: swap pool fees on the XRPL’s automated market maker, which fell 80.3%, and NFT royalties, which fell 69%.”

The stablecoin Ripple USD, or RLUSD, supplied the strongest growth signal during the same period. According to 21Shares, its total supply reached $1.56 billion by June 30, with 52% held on XRPL, compared with approximately 10% one year earlier. The ledger’s stablecoin base consequently expanded 1,131%, the firm said, creating deeper dollar-denominated liquidity for tokenized assets and decentralized finance.