XRP Supply Shock Incoming As Axelar And Flare Target 8 Billion Tokens
Summary
Axelar has launched the mXRP yield product, aiming to absorb $10 billion, or 5% of the XRP circulating supply. Flare Networks plans to mobilize up to 5 billion XRP by mid-2026. Both initiatives focus on programmatic lock-ups of XRP to tighten the tradable float. mXRP serves as a tokenized, yield-bearing representation of deposited XRP, targeting yields up to 8%. Flare's strategy involves FXRP wrapping and over-collateralized stablecoin loans to utilize idle XRP. Both projects encumber supply rather than destroy it, potentially reducing the free float available on exchanges. If successful, these efforts could sequester around 8 billion XRP, approximately 13% of the current circulating supply. XRP was trading at $2.87 at press time.
