XRP Supply Hits Historic Lows on Coinbase
A recent report indicates that XRP availability on Coinbase has dropped significantly, reaching record lows. This decline appears to be linked to a widespread boycott by investors and community members, prompted by delays in the CLARITY Act. Simultaneously, XRP holders are showing solidarity by withdrawing their assets from exchanges. Analysts have noted that this surge in withdrawals may result in a supply shortage, which could subsequently impact XRP’s price.
XRP supporter Diana shared insights about the reduction in Coinbase’s XRP reserves. She noted that the exchange’s balance fell to around 101.86 million XRP by late March 2026, following significant withdrawals. Estimates suggest that the supply on Coinbase has plummeted by nearly 90% over a few months, marking an all-time low.
The current boycott is largely due to dissatisfaction with Coinbase’s reaction to the CLARITY Act. The company voiced “serious concerns” regarding a recent Senate compromise bill, especially the provisions banning passive yields on stablecoins.
In 2025, Coinbase, alongside its partner Circle, reportedly generated about $2.75 billion from USDC reserves. Of this, Coinbase’s share was approximately $1.35 billion, making up nearly 19% of its overall revenue. Given the magnitude of these earnings, many in the XRP community suspect that Coinbase’s resistance to the revised bill stems more from a desire to protect its profits rather than cryptocurrency users.
Moreover, past allegations from 2019 that Coinbase sought millions from Ripple for listing XRP have further fueled community frustration. Diana noted that a recent 30-day review revealed a net outflow of between 21 million and 95 million XRP from Coinbase, suggesting that holders are transferring their assets to self-custody or different exchanges.
If this exodus continues, Coinbase could soon find itself with one of the lowest XRP reserves in years. The actions of XRP holders exemplify their unity and determination to resist what they perceive as unfair practices. Diana cautioned that dwindling reserves might lead to supply shortages when market demand rebounds.
Potential Positive Impact of Supply Shortages on XRP Price
A diminishing supply of XRP on major exchanges, such as Coinbase, might trigger a supply shock. As the availability of tokens for trading decreases and buying interest rises, the price could potentially increase.
Typically, a tight supply alongside active demand generates scarcity, often leading to upward price momentum. For XRP, the current withdrawal trend could result in a price increase if buying pressure resumes. Though Coinbase’s declining reserves may initially seem detrimental, this situation might ultimately prove advantageous for holders in the long run.
