New reports reveal that the supply of XRP on Coinbase has dropped to historic lows as investors and community members seem boycott the exchange due to the recent delay in passing the CLARITY Act. On the one hand, the recent move shows the common unity of XRP holders who are collectively leaving exchanges in protest. On the other hand, analysts suggest that a surge in the number of withdrawals could cause a collapse in the supply of XRP, potentially affecting its price.

XRP supply drops to historic lows on Coinbase

XRP supporter Diana decided to buy XRP explain the recent collapse of Coinbase’s XRP reserves. It reported that at the end of March 2026, the exchange’s balance had fallen to approximately 101.86 million XRP following wave of withdrawals By holders. Some estimates suggest that Coinbase’s supply has fallen by almost 90% in just a few months, a record low.

The recent boycott stems from widespread frustration with Coinbase’s resistance CLARITY Act. The company expressed “grave concerns” about the latest Senate compromise, particularly its wording ban passive profit from stablecoins.

Specifically in 2025 Coinbase and partner Circle generated approximately $2.75 billion in gross interest income from USDC reserves. Of this amount, Coinbase is estimated to have received approximately $1.35 billion, representing almost 19% of its total revenue. Given the scale of these gains, many in the XRP community believe Coinbase opposition to revised bill it is not intended to protect cryptocurrency users, but to prevent restrictions on one of their main sources of revenue.

Additionally, there were leaked claims that the exchange had requested that Ripple pay millions of dollars to issue XRP in 2019 also fueled anger in the community. As a result, Diana reported that the latest 30-day snapshot shows net outflows on Coinbase ranging from 21 million to 95 million XRP, indicating holders are moving the coins to self-storage 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 take a stand against perceived unfairness. In the face of these events, Diana warned that dwindling reserves could cause a spark potential supply collapse if 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 result in a possible supply shock. When fewer tokens are available for trading and interest in shopping increasesprices may also boost.

Typically, constrained supply coupled with lively demand can support cause scarcitywhich is historically known to trigger growth dynamics. In the case of XRP, the recent outflow trend could provide it with 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