XRP Supply Shock Incoming? Here's Why It Might Disappear from Exchanges Soon

XRP—currently the 4th largest crypto by market cap—once soared to $3.38 and is now hovering around $2.14. While some traders are nervous, others believe this is just a temporary dip. But what if this is your final shot to grab XRP before it becomes tough to find?

Let’s break down what’s really happening behind the scenes.

XRP's Supply Might Be Drying Up

Aduino Fina, a respected analyst from Alpha Lions Academy, has warned that a major supply shock could be on the horizon for XRP. In simple terms, this means XRP could become so scarce that even institutional investors may struggle to get their hands on it.

How could that happen?

Every time someone sends XRP, a tiny fraction—just 0.00001 XRP—is permanently destroyed. Over time, this continuous burn reduces the overall supply.

According to data from CryptoQuant, Binance's XRP holdings dropped from 2.94 billion at the beginning of the year to 2.86 billion today. That’s 82 million XRP gone in just a few months.

It may not sound huge, but when combined with other factors, it adds up quickly.

Investors Are Pulling XRP Off Exchanges

Beyond the slow burn, we’re also seeing a steady outflow of XRP from exchanges. Many investors are moving their coins to cold wallets for long-term storage. Since January, Binance alone has lost 183 million XRP due to these silent withdrawals.

Back when XRP hit a recent high of $3.30, everyone was rushing to sell, and Binance's hot wallet swelled to over 3 billion XRP. But once the hype cooled down, those coins started flowing out—quietly and consistently.

XRP ETF in the Pipeline?

Here’s where it gets even more interesting: there’s a 90% chance that an XRP ETF could get approved by the end of 2025. If that happens, major financial institutions, hedge funds, and banks will scramble to accumulate XRP.

With supply already dwindling and demand potentially exploding, this could trigger a serious price spike. And that’s exactly why some are calling this the last real opportunity to stack XRP before it becomes scarce—and expensive.

So, What Should You Do?

Cheeky Crypto, a trusted voice in the crypto space, reminds us: only invest what you can afford to lose. Big moves like ETFs and global adoption don’t happen overnight—they take time.

But if Ripple closes more banking deals in Asia and the Middle East, that could also push usage and price higher in the near future.

Right now, with XRP sitting around $2.14, down 9% over the past week, this dip might be a solid buying opportunity—especially if the supply shock thesis plays out.