XRP Ledger Q2 fees hit $48,168 as supply expands

XRP (CRYPTO: XRP) stood at $1.43 on Aug. 28, reflecting a 30-day gain of 33%. Alex Carchidi of The Motley Fool states he will not increase his holdings in the Canary XRP ETF despite the price appreciation, citing a disconnect between the asset's market value and its underlying economic fundamentals.

The primary driver for the recent price surge appears to be legislative activity rather than network utility. In mid-August, the U.S. Senate scheduled a vote on the Digital Asset Market Clarity Act for Sept. 15. Carchidi notes that if the bill passes, it would establish rules for financial institutions holding and transacting in crypto, likely benefiting XRP. However, he argues this regulatory catalyst does not reflect the coin's ability to generate ongoing economic value.

The XRP Ledger generated $48,168 in transaction fees during the second quarter. These fees are burned, which reduces the circulating supply and theoretically lifts the value of remaining coins. Yet this deflationary mechanism is being overwhelmed by inflationary supply growth. Approximately 272 million XRP entered circulation each month in the first half of 2026 due to long-standing escrow distributions implemented by issuer Ripple. The maximum supply is capped near 100 billion XRP.

Asset manager 21Shares estimates that network fee revenue would need to grow by approximately 12,700 times to offset a single year's worth of new supply hitting the market. Carchidi views this gap as a critical flaw, noting that even if Ripple secured agreements with major banks or the ledger hosted significant tokenized assets, holders might see no corresponding upside in coin value. The unaddressed disparity between chain success and coin value serves as his main reason for pausing further purchases.

Despite these structural concerns, Carchidi acknowledges that XRP faces significant upside pressure from current regulatory catalysts. He expects the coin to be worth more in 12 months than it is today and anticipates further gains over a five-year horizon if a sustained bull market emerges. Until supply issues are resolved, his strategy remains to hold his existing stake without adding more.