New reports indicate that the supply of XRP on Coinbase has plummeted to unprecedented lows as investors and community members appear to be boycotting the exchange. This drastic shift follows a significant delay in the proposed CLARITY Act, leading to collective action among XRP holders. The community’s decision to withdraw funds en masse is seen as a protest against Coinbase, which has sparked discussions about a potential supply crunch that could affect XRP’s price.
According to XRP advocate Diana, the supply of XRP on Coinbase dwindled to approximately 101.86 million tokens by late March 2026. This dramatic drop follows an exodus of investors from the platform, with estimates suggesting a near 90% decline over the past few months, marking a record low for the exchange.
The origins of this protest lie in growing dissatisfaction regarding Coinbase’s stance on the CLARITY Act. The exchange has voiced “significant concerns” about a recent Senate compromise, particularly the language banning passive yield on stablecoins. In 2025, Coinbase, along with partner Circle, reportedly earned around $2.75 billion in gross interest income from USDC reserves, with Coinbase itself receiving an estimated $1.35 billion, nearly 19% of its total revenue. Consequently, many XRP community members speculate that the exchange’s resistance to the revised legislation is not motivated by a desire to protect crypto users, but instead to safeguard a crucial revenue stream.
Adding to the tension, leaked allegations revealing that Coinbase requested millions from Ripple in 2019 to list XRP have further inflamed sentiments within the community. Recent data shows net outflows on Coinbase ranging from 21 million to 95 million XRP over the last 30 days, indicating a significant trend of holders transferring their tokens to self-custody or other exchanges. Should this trend persist, Coinbase could soon find itself with one of the lowest reserves of XRP in recent years.
The ongoing withdrawal movement underscores the unity among XRP holders and their readiness to challenge what they perceive as inequities in the crypto space. Diana has cautioned that this decline in reserves could lead to a potential supply crunch if market demand surges.
A reduced supply of XRP on major exchanges like Coinbase could create a scenario where a supply shock occurs. With fewer tokens available for trading, increased buying interest could drive up prices. The historical relationship between tight supply and active demand suggests that scarcity often leads to upward momentum in price. Thus, while the current depletion of XRP reserves on Coinbase may appear detrimental at first glance, it holds the potential for long-term benefits for holders if demand rebounds.
