XRP, currently the 4th largest cryptocurrency by market cap, once surged to $3.38 and is now trading around $2.14. While some investors see the dip as a warning sign, others believe it’s the calm before a major breakout. But what if the real story isn’t price — it’s supply?
A growing number of analysts believe a supply shock could be looming — and soon, XRP might become scarce on major exchanges.
🔥 XRP Liquidity Is Drying Up
Top crypto analyst Aduino Fina (Alpha Lions Academy) warns that XRP could be heading toward a serious supply crunch. If that happens, even institutional investors may find it difficult to buy in bulk.
Here’s what’s fueling the theory:
Every XRP transaction permanently burns a tiny fraction (0.00001 XRP).
Binance’s XRP holdings have dropped from 2.94B in January to 2.86B today — a loss of 82 million XRP.
More XRP is leaving exchanges than coming in, as investors shift to cold storage — a signal of long-term confidence.
📉 XRP Quietly Exiting Exchanges
Since the start of the year, Binance alone has seen 183 million XRP withdrawn. But this isn’t panic selling — it’s smart money moving off-chain.
Earlier this year, XRP hit $3.30 and exchange balances spiked as traders sold off. Now, we’re seeing the reverse: coins are flowing out, suggesting stronger hands are accumulating.
🚀 XRP ETF Approval Could Be Next
Adding fuel to the fire, there’s growing speculation that an XRP ETF could be approved by late 2025. Industry insiders are giving it a 90% chance of success — a move that could unleash a new wave of institutional demand.
Combine shrinking exchange reserves with ETF-driven demand, and you have the perfect recipe for a supply squeeze.
🎯 TL;DR
XRP supply on exchanges is falling fast 📉
Investors are moving holdings to cold wallets 🔐
A potential ETF could drive massive new demand 📈
Supply is shrinking while demand could explode 🚀
👉 Are you positioned for the XRP supply shock?