XRP's circulating supply grew 5.5% year over year, while revenue on the XRP Ledger tumbled 81.6%, according to network data. The divergence comes as stablecoin balances and institutional tokenization expand on the ledger, but those activities haven't yet made up for the shortfall in transaction fees.
Why supply keeps growing
The supply increase is tied to the ledger's monthly escrow releases. Each month, a portion of XRP held in escrow is unlocked and enters circulation. When the amount released exceeds the amount returned to escrow, the circulating supply grows. That's been the case over the past year, pushing supply up by 5.5%.
That expansion creates dilution, and the fee-burning mechanism built into the XRP Ledger doesn't offset it. The burn rate from transaction fees is lower than the pace of new supply entering the market. So the net effect is more XRP in circulation, which dilutes holders' positions over time.
Revenue slide despite network growth
The 81.6% drop in XRPL revenue is steep. It comes as stablecoin balances and institutional tokenization expand on the network. Those areas are growing in terms of activity and assets locked, but they're not generating the same level of transaction revenue as earlier use cases.
The ledger's fee structure ties revenue to transaction volume and type. More tokenized assets and stablecoin transfers don't necessarily mean more fee income, especially if the transactions are cheaper or less frequent. The data suggests that the growth in these new areas hasn't been enough to keep revenue from falling.
The escrow releases are a separate factor. They don't directly affect revenue, but they add to the supply side. Combined with the revenue decline, the network faces a simple math problem: more XRP in circulation, less revenue coming in.
What the numbers point to
For holders, the 5.5% supply growth is a slow but steady drag. The fee burns are designed to reduce supply over time, but they're not keeping pace with the monthly releases. That gap is what's driving the dilution.
For the XRP Ledger's ecosystem, the revenue drop raises questions about the economics of its newer features. Stablecoins and tokenization are seen as long-term growth areas, but right now they're not paying the bills. The next few quarters will show whether the expansion eventually generates enough transaction volume to reverse the revenue slide, or whether the supply growth continues to outpace any gains.
