A market expert has cautioned that XRP's circulating supply could diminish as institutions and businesses increasingly hold the token for strategic purposes. This trend is driven by large investment funds and Ripple's recent acquisitions aimed at integrating XRP into corporate finance. On-chain data indicates a gradual shift toward long-term storage, potentially impacting market liquidity.
Large investment funds are raising billions to acquire and hold XRP, which could reduce the token's available supply in the market. Ripple-backed ventures are setting up such funds, including a planned $1 billion raise targeting accumulation through a U.S. stock market listing. When institutions purchase large amounts and store them rather than trade, it decreases the number of tokens in active circulation, potentially making XRP scarcer and influencing its price over time.
Ripple's $1 billion acquisition of GTreasury, a treasury management software provider, enables companies to integrate XRP into daily financial operations and cash management. This development allows finance departments to hold XRP directly for liquidity or payments, rather than relying solely on banks or exchanges. As a result, more tokens may remain idle in company accounts instead of circulating freely.
On-chain data shows rising transfers to custodial and institutional wallets, along with higher holdings among institutional addresses and inflows to XRP-linked funds. These signals point to a slow but steady increase in long-term holdings, suggesting XRP's liquid supply could continue to decline.
Currently, XRP has about 59.98 billion tokens in circulation out of a total 100 billion, resulting in a market capitalization of roughly $145–150 billion. Corporate and institutional adoption may lead to more XRP being locked in long-term storage rather than trading hands. However, the long-term impact depends on whether these holdings remain stored or eventually return to circulation. As of October 2025, the balance between adoption and liquidity shapes XRP's outlook.