XRP Supply Shock Incoming? Why It Might Vanish From Exchanges Soon

XRP, the fourth-largest cryptocurrency by market cap, once surged to an all-time high of $3.38 and is currently holding at around $2.14. While some investors are nervous about the recent dip, others believe it’s just a brief pause before another major move. But what if this is actually your last chance to accumulate XRP before it becomes scarce on exchanges?

Let’s explore why experts think a supply shock might be coming—and what it means for the future of XRP.

A Major Supply Shock May Be Brewing

According to Aduino Fina, a respected analyst at Alpha Lions Academy, XRP could be on the brink of a massive supply shock. That means it might become so scarce that even institutional investors will struggle to acquire it in large quantities.

But how is that possible?

Every XRP transaction burns a small amount—0.00001 XRP—permanently removing it from circulation. Over time, this seemingly tiny burn adds up. According to data from CryptoQuant, Binance’s XRP holdings have dropped from 2.94 billion at the beginning of the year to about 2.86 billion today. That’s 82 million XRP gone in just a few months.

XRP Is Rapidly Leaving Exchanges

The burn mechanism isn’t the only factor reducing XRP supply. A growing number of holders are transferring their XRP off exchanges and into cold wallets for long-term storage. Since January, Binance alone has seen 183 million XRP withdrawn quietly by investors.

Back in January, XRP’s rally to $3.30 led to a spike in exchange reserves as traders rushed to sell. But once the hype faded, the trend reversed—and coins started flowing out of exchanges again, signaling accumulation and long-term holding.

XRP ETF Approval Could Be a Game Changer

Adding fuel to the fire, there's reportedly a 90% chance that an XRP ETF could be approved by the end of 2025. If that happens, institutional