I’ve been closely watching $XRP

lately, and something big is brewing. The signs are subtle, but undeniable: XRP’s supply is quietly drying up — and hardly anyone is talking about it. Coins are being withdrawn from exchanges at an accelerating pace, and with each transaction, a small fraction of XRP is permanently burned. This isn’t noise — it’s the setup for a major supply shock.

Let me break it down.

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XRP’s Supply Is Shrinking Fast

Every time you move XRP, a tiny amount — 0.00001 XRP — is permanently destroyed. Sounds insignificant, right? But multiply that by millions of transactions, and the impact starts to grow. Over time, this slow drip becomes a real reduction in circulating supply.

According to CryptoQuant, Binance’s $XRP reserves have dropped from 2.94 billion to around 2.86 billion in just the first half of 2025. That’s a loss of 82 million XRP on one exchange alone.

And it gets deeper.

Since January, about 183 million XRP have been quietly withdrawn from Binance. These aren’t short-term traders. These are long-term holders moving their assets to private wallets — and likely preparing for something bigger.

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The Calm Before the Storm?

Earlier this year, XRP briefly hit $3.30 — its highest price in 7 years. At the peak of that excitement, Binance’s XRP wallet ballooned to over 3 billion coins. But instead of panic-selling when the price cooled, what happened next was surprising: people started withdrawing, not dumping.

Now XRP is holding steady around $2.50, and while some are feeling nervous, I see this as something else entirely: a pause before the next wave.

What if this is the last window to grab XRP before it becomes scarce on the open market?

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XRP ETF Could Change Everything

Here’s where things could go parabolic.

There’s growing speculation — with some analysts giving it a 90% chance — that an XRP ETF could be approved by the end of 2025. If that happens, it opens the floodgates for institutional investors: hedge funds, asset managers, even banks.

And here’s the catch — to back an ETF, they’ll need to own real $XRP

.

With retail users already pulling XRP off exchanges and daily burns quietly eating into the total supply, the demand/supply imbalance could get extreme. The result? A potential supply squeeze that sends XRP soaring.

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Final Thoughts

While the market keeps its eyes on Bitcoin ETFs and meme coin trends, something much more fundamental is happening with XRP. The supply is thinning out. Smart money seems to be accumulating. And an ETF approval could be the catalyst that pushes it into a new era.

If you’re holding XRP — or thinking about it — pay attention. These quiet moves might just be the beginning of something explosive.