Is XRP running out ? A recent debate between market analyst Jake Claver and other industry commentators has thrust the digital asset back into the spotlight, predicting a looming supply crunch. As structural limits meet rising demand, experts warn of a “sell-out” scenario that could fundamentally redefine the token’s market dynamics. The Escrow Trap And The Reality Of An XRP Supply Shock The core of the “sell-out” claim lies in the technical architecture of the XRP Ledger’s escrow system. In a post on January 14, 2026, Claver explained that Ripple’s monthly supply releases are hard-coded into the protocol, meaning the company is unable to inject extra tokens into the market during a liquidity crisis. While this mechanism was designed to provide predictability and limit manipulation, it creates a double-edged outcome. In a high-demand environment, supply becomes effectively inelastic. This structure is more relevant when viewed against current supply figures. XRP has a hard maximum of 100 billion tokens. About 60.7 billion XRP are already in circulation, leaving roughly 39.3 billion outside active market supply. At a price near $2.10, circulating supply translate to a market capitalization above $127 billion, while the fully diluted valuation sits close to $210 billion. These figures show that nearly 40% of XRP’s total supply is effectively off the table and cannot be accessed to meet sudden demand. If a large institution attempted to buy $10 billion worth of XRP, Ripple could not unlock escrow early to provide liquidity because the ledger prohibits releases beyond the 1-billion-token monthly cap. Any abrupt surge in buying pressure therefore, cannot be met with new supply. This rigidity materially increases the risk of a severe supply shock , with price acting as the sole pressure valve under this structural bottleneck. Institutional Accumulation Pushes Toward A Liquidity Cliff The conversation escalated when a user known as RemiRelief responded to Claver, sounding an alarm that XRP is “on the verge of being sold out completely.” RemiRelief argued that there is very little liquid supply left on exchanges and predicted a “mind-boggling” scenario if investors began moving their holdings into private storage. The post specifically pointed to the potential entry of BlackRock as a catalyst that would drain the remaining “low-hanging fruit” from the market. The current performance of XRP ETFs supports this “constant buying” narrative. Since early 2026, XRP ETFs have seen massive, consistent net inflows —reaching over $1.37 billion in a single week. Every dollar flowing into an ETF represents XRP being sucked out of the public market and locked into institutional vaults. RemiRelief’s claim stems from this collision: institutional giants are buying up tokens at a record pace, while the “escrow trap” Claver described prevents any new supply from entering the market to balance it out. Beyond signalling a looming sellout, this debate emphasizes that the window for acquiring XRP at “low” prices is closing fast.
