6 facts about ‘1.12% XRP missing’: XRP Supply & Crypto Reality

Jakarta, Pintu News – The issue of some XRP supply being “lost” is back in circulation after a market data analysis report showed a 1.12% absorption of supply by Exchange Traded Fund (ETF) products. The important question is whether XRP is really missing or simply stored outside of general market circulation. This article summarizes six objective facts from the recent report that are relevant for cryptocurrency investors.

1. Context of 1.12% “Gone” XRP Supply

The term claiming that “1.12% of XRP supply is missing” refers to the amount of XRP that is not visible in regular trading market circulation because it has been absorbed by investment products such as ETFs. According to the U.Today report, the 1.12% figure comes from the total net assets (AUM) of approximately USD 1.24 billion in XRP spot ETFs against the overall XRP market capitalization.

However, if interpreted as tokens being completely burned, lost, or wiped out of existence, the report confirms that this is not the case. XRP remains in existence, only partially in the coffers of investment products and not actively traded on the regular spot market.

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2. ETFs Affect XRP’s Available Float

XRP held in ETF products is not automatically available for trading on the spot market, practically reducing the amount of actively traded float. According to U.Today, this mechanism actually shrinks the amount of XRP that is easily accessible to retail investors, although the total supply remains the same.

The XRP ETF products included in this count include several large tickers from issuers such as Canary, 21Shares, Bitwise, Grayscale, and Franklin Templeton, each of which holds hundreds of millions of XRP for investment product needs.

3. Supply Under Circulation is Not Supply Loss

The same data shows that the “missing supply” is not due to tokens being burned or cryptographically lost. Rather, they are simply being diverted to institutional investment vehicles such as ETFs that tend to make them appear less frequently on exchange order books. This is often referred to as a supply squeeze.

In the context of the cryptocurrency market, such a phenomenon can occur when institutional flows withdraw supply from the retail market, thereby relatively reducing selling volumes. However, the total supply is still recorded on the XRP blockchain network.

4. Supply on Exchange Also Shrinks Sharply

In addition to the ETF phenomenon, on-chain data shows that the supply of XRP listed on traditional exchanges dropped significantly. Reports from other sources show that the amount of XRP on exchanges dropped from around 3.76 billion to around 1.6 billion, which is the lowest level in the past seven years.

This decline reflects more holders moving XRP to private wallets or long-term holding (HODL), which also reduced the number of tokens actively traded on the spot market.

5. Supply Squeeze vs XRP Market Price

Some analysts have cited this tight supply phenomenon as potentially creating price pressure if demand remains high or increases, as fewer tokens are available to buy directly on the spot market. However, other analysts think the supply shock narrative may be overblown and XRP prices remain more influenced by broader crypto market dynamics, including Bitcoin movements and investor risk sentiment.

This difference of opinion suggests that the supply squeeze caused by ETFs is not the only factor determining the price of XRP, but rather one of a wide range of technical and fundamental indicators in the cryptocurrency market.

6. XRP Never Really “Goes Away”

In conclusion, the 1.12% figure referred to as “gone” refers to the XRP supply that is effectively tied up in ETFs and unavailable for regular spot trading, not the supply that has been burned or lost from the blockchain. The XRP blockchain keeps a record of all tokens ever issued, and there is no automated mechanism that deletes tokens simply because they are moved to an investment product.

The ERC-20 mechanism and the XRP ledger ensure that token supply does not disappear without special processes such as burns being recorded on-chain. Claims of lost supply are merely an interpretation of market availability and not a technical statement about the token’s existence.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Gamza Khanzadaev/U.Today. Is 1.12% of XRP Supply Gone? Accessed January 2, 2026.