XRP’s Supply Shock Is Looming—Here’s Why It Matters
XRP is quietly becoming one of the scarcest assets in the crypto world. As more investors move their coins off exchanges and every transaction burns a small amount of XRP, we may be on the edge of a major supply shock.
Meanwhile, the long-anticipated XRP ETF could be approved as early as 2025—potentially unleashing massive demand from banks and institutional investors. The clock might be ticking.
Shrinking Supply, Rising Demand
Every XRP transfer permanently burns 0.00001 XRP. It might seem insignificant, but over millions of transactions, these tiny burns gradually chip away at the total supply.
According to CryptoQuant, Binance’s XRP reserves have dropped from 2.94 billion at the start of the year to around 2.86 billion today—a loss of 82 million XRP. On top of that, over 183 million XRP has quietly been withdrawn from Binance into private wallets, signaling long-term holding strategies.
This Isn’t Just a Dip—It Might Be the Last Window
XRP, currently the 4th largest cryptocurrency by market cap, reached a high of $3.38 before stabilizing around $2.50. Some see this as a correction—others see it as a calm before the storm.
Well-known analyst Aduino Fina from Alpha Lions Academy believes a full-blown supply shock is imminent. As more XRP exits exchanges and heads into cold storage, liquidity dries up. Even large investors could find it difficult to buy in later.
ETF Approval Could Be the Catalyst
The real game-changer? The potential XRP ETF. Experts say there’s a 90% chance it gets approved by the end of 2025. If that happens, institutions will race to accumulate XRP—further tightening supply.
The Bottom Line
XRP is slowly disappearing from exchanges. The burn mechanism, increased cold storage, and the looming ETF approval are all contributing to a tightening grip on available supply. If you're watching from the sidelines, this might be your last easy opportunity to buy before scarcity kicks in.
Are you ready for the XRP supply crush?