Ripple currently controls a staggering amount of XRP, and now questions are piling up from market experts as to whether the crypto payments company might be forced to sell 25% of its 45 billion token holdings. Analysts suggest a potential sell-off could have major ramifications. At the same time they question the routes Ripple could sell its shares and who the potential buyers might be.
Ripple is under pressure to sell 25% of XRP shares
Ripple may soon have to drastically reduce more than half of its value significant XRP reserves as regulatory discussions on the proposed CLARITY Act intensify. In a recent post on X, market expert Crypto Sensei said shared a video, drawing attention to a provision in the CLARITY Act that would prevent any company from controlling more than 20% of a blockchain’s total supply.
Currently, Ripple owns 45 billion XRPdivided between escrow and direct reserve, which represent 45% of the cryptocurrency total supply of 100 billion tokens. This indicates that the company controls almost half of the total XRP supply – a level of concentration that is typically at odds with the decentralization narrative of crypto and blockchain technology.
Crypto Sensei suggests that US lawmakers are seemingly focused on preventing excessive supply accumulation, and Ripple’s holdings stand out as one of the clearest examples of a single entity. controlling a large portion of a network’s token. According to the analyst, if the CLARITY Act is implemented in 2026, Ripple may have to sell at least 25% of its shares to comply with the legislation.
A reduction of this magnitude would reduce the crypto company’s XRP reserves to 20 billion tokens, or 20% of the cryptocurrency’s total supply. At the current price of $2.0 per token this would amount to approximately $40 billion. In particular, such a sell-off would likely require coordination with liquidity providers and partner institutions to avoid unnecessary market disruption.
Potential sales paths and institutional speculation
In his X-video, Crypto Sensei outlined several possible paths Ripple could take to reduce its substantial XRP reserves. One option is to sell the rights to future escrow releases instead of the tokens themselves. Another involves selling the accounts where the held XRP is completed while preventing the tokens from circulating.
According to the market expert, these possibilities have led to widespread developments speculation that major financial players, like BlackRockcould already be involved or ready to purchase future XRP escrow rights. The idea continues to circulate because it would allow institutions to gain exposure to the cryptocurrency without immediately impacting the circulating supply.
Crypto Sensei also notices this Ripple locks approximately 700 million XRP in escrow each month, raising questions about whether these transfers can represent sales. The analyst claims that if sales were to occur, the on-chain trajectory would clearly show tokens moving into buyers’ wallets, but the data does not reflect this. He emphasized that current evidence points to a much more controlled internal process than an internal process large-scale institutional distributions.
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