KEY TAKEAWAYS
- Large investment funds are raising billions to buy and hold XRP, which could reduce available supply in the market.
- Ripple’s $1 billion acquisition of GTreasury enables companies to use XRP in their daily financial operations and cash management.
- Corporate and institutional adoption may lead to more XRP being locked in long-term storage instead of trading hands.
- On-chain data already shows rising transfers to custodial and institutional wallets, hinting at a gradual supply squeeze.
- The long-term impact will depend on whether these holdings remain stored or eventually return to circulation.
Large investors and new business tools are beginning to hold more XRP for long periods, potentially reducing how much remains in everyday trading. This trend could reshape supply and demand over time.
A recent market expert suggests XRP could become harder to find in open circulation as more institutions and companies start holding it for strategic use.
XRP’s current circulation is about 59.98 billion out of a total 100 billion, giving the token a market cap of roughly $145–150 billion. If more of that supply moves into long-term storage, the amount available for trading could shrink.
ALSO READ: Will XRP Hit $5? Three Scenarios for the 2025 Bull Run
Institutional Treasuries and Long-Term Holding
Ripple-backed investment ventures have started setting up large funds aimed at buying and holding XRP. One example is a planned $1 billion raise that targets accumulating the token through a U.S. stock market listing.
When institutions buy large amounts and store them instead of trading, it reduces the number of tokens moving in the market. This can make the asset scarcer and may influence its price over time.
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Business Use and Treasury Software Adoption
Ripple’s recent $1 billion purchase of GTreasury, a treasury management software provider, shows its goal of getting XRP into corporate systems. The deal allows companies to integrate XRP into their regular cash and payment management tools.
This makes it easier for finance departments to hold XRP directly, rather than relying only on banks or exchanges. If more businesses adopt XRP for liquidity or payments, those tokens may sit idle in company accounts instead of circulating.
Tracking Supply Changes on the Blockchain
Analysts point to several data signals worth watching. Large transfers to custodial wallets, higher holdings among institutional addresses, and inflows to XRP-linked funds can all indicate that supply is tightening.
On-chain activity already shows a slow but steady rise in long-term holdings, suggesting that XRP’s liquid supply could continue to decline.
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Conclusion
Institutional investment in XRP and business adoption are beginning to shift how the token is used and stored.
While this could increase scarcity and support higher value in the future, the long-term effect depends on whether these holdings stay locked or eventually return to the market.
As of October 2025, the balance between adoption and liquidity remains one of the most important factors shaping XRP’s outlook.
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