XRP Faces Dilution Crisis as Revenue Plummets 81.6%

XRP's circulating supply grew by 5.5% year-over-year through escrow releases, leading to dilution that current fee burns cannot offset, according to a report from 21Shares.

The firm noted that XRP's revenue fell 81.6% year-over-year to $1.18 million, largely due to declines in swap pool fees and NFT royalties on the XRPL network.

While stablecoin balances and institutional tokenization expanded on the network, XRP's revenue failed to keep pace with its growing supply, resulting in a net annual drag of 5.5% for holders at current fee levels.