In recent months, on-chain analysts have observed a striking trend: XRP holdings on centralized exchanges are rapidly decreasing. Particularly on large platforms like Coinbase, the decline is dramatic – from nearly 1 billion XRP in cold wallets, only around 100 million remain today. Data also shows significant outflows on Binance, Upbit, and other platforms.
This development means: More and more investors are moving their XRP into private wallets or custody solutions, where the tokens are not immediately sellable. As a result, the effectively liquid supply decreases. Although the total circulation of XRP remains the same, the freely tradable supply on the markets becomes scarcer.
For traders and investors, this could have far-reaching consequences:
If demand increases, the price could react faster and more strongly due to thinner order books.
Large buy orders would have more influence on the price, as less XRP is immediately available on exchanges.
A potential supply shock is already being intensely discussed in the community.
It is still unclear how long this trend will last and whether stocks will eventually rise again. What is clear, however, is that decreasing liquidity increases the likelihood of short-term price fluctuations – in both directions.
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