Market Analysts Warn Of Potential Supply Shock As XRP Exchange Holdings Decline

Markets 2025-12-16 02:17

Market Analysts Warn Of Potential Supply Shock As XRP Exchange Holdings Decline

XRP supply on centralized exchanges has dropped to 4 billion tokens, representing just 8% of circulating supply, according to recent market analysis. The decline comes as investors move holdings into long-term storage despite declining prices.

What Happened: Exchange Holdings Drop

More than 30 million XRP tokens left exchanges in a single day over the weekend, according to Ripple Bull Winkle's analysis posted on the X platform.

The withdrawal pattern suggests investors are prioritizing self-custody over immediate trading access.

The current 4 billion token exchange supply marks a significant contraction in readily available trading inventory. Ripple Bull Winkle noted that most exchange supply represents non-liquid holdings rather than active sell orders.

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"Such thin float with growing institutional demand is likely to lead to explosive conditions," Ripple Bull Winkle wrote. "Supply shocks don't show warnings; they just detonate."

Why It Matters: Institutional Positioning

The supply reduction occurs as XRP Spot Exchange-Traded Funds (ETFs) maintain $1.34 billion in assets under management with 669 million tokens locked.

X Finance Bull reported the funds recorded zero daily outflows during the past 30 days, the only crypto ETFs with that distinction.

Market analysts view declining exchange supply as a precursor to reduced sell pressure and heightened price sensitivity to demand changes. "Liquidity disappears first," Ripple Bull Winkle stated. "Most people won't notice until sellers are gone."

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This content is for informational purposes only and does not constitute investment advice.

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