New reports indicate that the supply of XRP on Coinbase has fallen to an all-time low, as investors and community members appear to be boycotting the stock exchange following the recent delay in the CLARITY Act. On the one hand, the recent movement shows a collective unity among XRP holders as they collectively leave the exchanges in protest. On the other hand, analysts suggest that the surge in withdrawals could cause a supply crunch for XRP, potentially impacting its price.
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XRP Supply Drops to Historic Lows on Coinbase
XRP lawyer Diana went to X explain the recent collapse of Coinbase’s XRP reserves. She reported that the exchange’s balance had fallen to approximately 101.86 million XRP at the end of March 2026 after a wave of withdrawals Through holders. Some estimates suggest that Coinbase’s supply has fallen by almost 90% in just a few months, which is a record low.
The recent boycott comes amid widespread frustration over Coinbase’s opposition the CLARITY Act. The company has raised “significant concerns” about the latest Senate compromise, particularly the wording that would do so ban passive returns on stablecoins.
Particularly in 2025 Coinbase and partner Circle generated approximately $2.75 billion in gross interest income from USDC reserves. Of this, Coinbase is estimated to have received approximately $1.35 billion, almost 19% of its total revenue. Given the magnitude of these gains, many in the XRP community believe that Coinbase’s opposition against the revised bill is not to protect crypto users, but to prevent restrictions on one of the most important revenue streams.
Additionally, claims were leaked that the exchange had filed for Ripple pay millions of dollars to list XRP in 2019 have also fueled anger within the community. As a result, Diana reported that recent 30-day snapshots show net outflows on Coinbase ranging from 21 million to 95 million XRP, indicating holders are moving coins to self-custody or other exchanges.
If this trend continues, Coinbase could soon become the exchange with one of the lowest XRP reserves in years. Recent actions by XRP holders also highlight the community’s unity and willingness to push back against perceived unfairness. Amid these developments, Diana has warned that dwindling reserves could intensify a potential supply crisis when market demand returns.
Why a supply crunch could be good for the XRP price
A reduced XRP balance on a major exchange like Coinbase could cause a potential supply shock. When there are fewer tokens available to trade and the purchase interest rate increasesprices may also rise.
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Typically, tight supply combined with active demand can be cause scarcitywhich has historically been known to generate upward momentum. For XRP, the recent outflow trend could position it for potential gains if buying pressure returns. While Coinbase’s decline may seem negative at first, it could benefit holders in the long run.
Featured image from Unsplash, chart from TradingView