XRP Exchange Supply Reaches Seven-Year Low Amidst Market Speculation

Cointelegraph announced on social media that exchanges’ XRP reserves have decreased to a 7-year low of 1.6 billion tokens, last reported from 3.76 billion in October.

This significant decline raises questions about potential impacts on liquidity and market dynamics, although lacking confirmation from primary sources such as official exchange statements or blockchain data.

Unverified Claims Prompt Caution Among XRP Market Participants

The significant drop in XRP exchange supply has yet to be verified by primary sources, creating a challenging landscape for accurate analysis. Many secondary sources cite Glassnode, but primary data remains unverified. In recent weeks, discussions have intensified as the exchange XRP supply is argued to hit lows not seen since 2018. Despite the widespread dissemination of these reports, no official confirmations from major exchanges like Binance or Ripple leadership have emerged.

The ambiguity surrounding this alleged supply drop has prompted market watchers to consider potential outflows or strategic shifts. Speculation circulates on whether exchange-traded funds (ETFs) holding XRP could explain the perceived reductions. Community reactions have been mixed, with some emphasizing potential inaccuracies without proper validation.

Historical Context, Price Data, and Expert Insights

Did you know? The claimed drop in XRP supply revisits patterns seen in 2018, a year marked by similar supply shifts before notable price rallies. However, primary verification of such historical context remains absent.

XRP’s current price stands at $1.87 with a market capitalization of $113.38 billion, representing a market dominance of 3.79%, as reported by CoinMarketCap. The cryptocurrency experienced a 0.53% rise over the past 24 hours, but longer-term trends show more significant decreases, with a 37.14% drop over three months. Its trading volume over the past day reached $1,745,034,580, down by 9.03%.

Experts from Coincu suggest that if verified, the circulating scarcity could eventually influence XRP pricing and liquidity. However, due to unconfirmed primary verification, caution is advised for investors considering potential impacts in the short term.