22M XRP Leave Exchanges, Raising Questions Over Short-Term Supply

TLDR

• XRP exchanges recorded a net outflow of 22 million tokens in the first week of January.
• Upbit and Bithumb in South Korea saw the highest XRP withdrawals during the period.
• Binance and Crypto.com reported inflows of XRP, balancing the overall exchange activity.
• Exchange wallet balances declined by only 0.14% since December 31.
• Analysts suggest the movement reflects regional shifts rather than a true supply shock.

Fresh exchange data has raised concerns around XRP supply as major platforms recorded a net outflow of 22 million XRP, yet analysts say it’s a regional and temporary redistribution rather than a market-wide supply shock, even as short-term trading pressure continues near key price levels and resistance zones.

South Korean Exchanges Record High XRP Outflows

XRP outflows from South Korean platforms stood out during the first week of January, drawing increased market attention. Upbit recorded nearly 36 million XRP outflows, while Bithumb saw about 8 million XRP exit during the same period.

This movement suggests some South Korean traders are reducing positions or taking short-term profits after recent price activity. Though the total combined outflow is 44 million XRP, overall exchange balance data tells a different story.

According to Leonidas Hadjiloizou, XRP exchange balances fell by only 0.14% since December 31. He tracked wallets holding at least 1 million XRP to assess shifts in exchange-held supply across major platforms.

Global Exchanges Show Redistribution, Not a Shock

Outside South Korea, several exchanges recorded inflows, showing redistribution instead of overall decline in XRP supply. Binance logged nearly 28 million XRP in inflows, while Crypto.com gained approximately 9 million XRP during the same period.

These flows helped offset Korean outflows and pointed to a regional rather than a global movement of XRP. Hadjiloizou explained the overall balance drop was minor in percentage terms compared to XRP’s trading activity.

“Although 22 million XRP left exchanges, it accounts for just 0.14% of total balances,” he clarified on social media. This context weakens the argument for a looming supply squeeze across the broader market.

Crypto legal analyst Bill Morgan said that exchange balances have started to rise again, easing short-term concerns. His observation supports the view that XRP remains available and liquid across global platforms.

Trading Volume, Price Action, and Market Sentiment

Despite the exchange movements, XRP price dropped by over 7% within 24 hours after failing at resistance near $2.40. The token met strong selling pressure around the $2.38–$2.40 range, leading to a retreat in bullish momentum.

That rejection stalled XRP’s upward movement and shifted short-term sentiment. Daily XRP trading volume ranged from $2–$4 billion, equating to 1–2 billion XRP traded daily at current prices.

Therefore, the 22 million XRP outflow equals only about 1% of a single day’s volume. Ali Martinez highlighted that XRP showed signs of a rebound following the drop, citing a TD Sequential buy signal.

He noted that downside pressure may be easing, leaving room for a possible short-term bounce. At present, XRP maintains strong daily liquidity, and exchange availability remains stable across major global platforms.

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