XRP’s exchange supply has dropped sharply, falling about 57% over the past year from nearly 4 billion tokens to around 1.5–1.7 billion. This is the lowest level since the 2017–2018 cycle and signals strong accumulation rather than panic selling.
With far fewer tokens available on exchanges, liquidity has tightened. As a result, even moderate buying pressure can now move price much faster, with 10–15% swings possible in a short time. This structural shift increases the probability of a stronger breakout compared to past rallies that struggled below $3.
A major driver of this supply squeeze is the rise of spot XRP ETFs. Since their launch in November 2025, ETF custodial wallets have absorbed roughly 750 million XRP, supported by more than $1.37 billion in inflows. Institutional custody, along with large withdrawals from major exchanges like Binance and Korean platforms, is steadily removing tradable supply from the market.
Together, shrinking exchange balances and growing institutional demand suggest XRP’s market structure is tightening, setting the stage for a potential move toward the $4–$5 range if buying momentum continues.
