XRP Supply Shock Looms as Axelar and Flare Plan 8 Billion Lock-up

Two major initiatives are attempting significant structural changes in the XRP market through programmatic lock-ups of large portions of circulating supply.

Axelar has launched "mXRP," aiming to absorb $10 billion, representing 5% of XRP's circulating supply. Axelar's mXRP is a yield-bearing tokenized representation of deposited XRP intended for on- and off-chain strategies.
Flare Networks aims to mobilize up to 5 billion XRP by mid-2026, focusing on FXRP wrapping and over-collateralized stablecoin loans.

Both initiatives could tighten the near-term tradable float if targets are met:

Axelar plans to encumber approximately 3.0 billion XRP.
Flare's goal could see a total of 8 billion XRP impacted, amounting to about 13% of today's float.

The mechanical process involves minting mXRP against custodied XRP and using FXRP wrapping and CDP-style borrowing in Flare's case. This may lead to a "supply shock" as balances move from exchange inventories into other financial structures, potentially compressing available supply.

At the time of reporting, XRP was trading at $2.87.

XRP price