Market News

XRP Exchange Supply Hits 7-Year Low: ETF Buying Drives Token Squeeze in 2025

Published: December 31, 2025

XRP‘s available supply on exchanges has plunged to its lowest level since 2018, falling to approximately 1.6 billion tokens. This sharp reduction—down 57% since October—stems largely from aggressive accumulation by U.S. spot XRP ETFs, reducing liquid sell pressure and setting the stage for potential price dynamics at current levels near $1.87.

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Current XRP Price Action Overview

As of late December 2025:

  • Price: $1.87 (slight daily change).
  • 24-Hour Range: $1.86 – $1.88.
  • Market Cap: $113.35 billion.
  • 24-Hour Volume: $1.73 billion.

XRP faces resistance near $1.90 while defending support around $1.80, reflecting broader market consolidation.

XRP Exchange Supply Squeeze: Lowest Since 2018

On-chain data reveals a dramatic decline in tokens held on exchanges:

  • Current Level: ~1.6 billion XRP.
  • Drop from October Peak: 57% reduction (from over 3.7 billion).
  • Historical Context: Lowest since early 2018, pre-bull market phase.

Reduced exchange balances typically signal long-term holding and decreased immediate sell pressure.

Institutional Accumulation via ETFs

U.S. spot XRP ETFs have been major drivers:

  • Total Inflows Since Mid-November: Over $1.14 billion.
  • Estimated ETF Holdings: Absorbed ~750 million tokens.
  • Key Players: Canary, 21Shares, Bitwise, and others actively building positions.

This institutional demand removes significant supply from circulation, tightening available liquidity.

Technical Outlook: Falling Wedge and Supply Impact

Chart patterns suggest potential catalysts:

  • Falling wedge formation on higher time frames—often resolves bullishly.
  • Key Resistance: $1.90 – breakout could target $2.00+.
  • Support Zone: $1.80 – hold critical for continuation.
  • Supply Effect: Lower floating supply may amplify upside moves on buying volume.

Macro headwinds remain, but shrinking reserves provide fundamental tailwind.

Broader Implications for XRP Holders

  • Reduced sell pressure from exchanges.
  • Increased scarcity for new buyers.
  • Potential for sharper reactions to positive catalysts (regulatory clarity, adoption news).

Conclusion

XRP’s exchange supply reaching a 7-year low around 1.6 billion tokens—driven by ETF accumulation—marks a significant shift in market structure. At $1.87, technical setups and tightening supply suggest growing underlying strength despite short-term pressures. Long-term holders may view this as validation of reduced liquidation risk heading into 2026.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile.

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