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Coinpaper 2025-12-31 12:54:38

Supply Shock Incoming? Exchange Holdings Fall to 8-Year Trough

XRP Exchange Supply Hits 8-Year Low: Why 2026 Could Spark a Supply Shock Market analyst Diana highlights that XRP’s exchange supply has plunged to an eight-year low, potentially setting the stage for a 2026 supply shock. Glassnode data shows XRP on exchanges has dropped to roughly 1.6 billion coins from 3.76 billion, the lowest since 2018. With far fewer coins available for trading, the move signals bullish potential. Why hasn’t XRP’s price surged yet? It’s not hype, it’s market mechanics. As XRP leaves exchanges, it moves to custodians, ETF vaults, OTC desks, and institutional wallets. These coins stay liquid but off the public market, shrinking the supply available for immediate trading and setting the stage for future price momentum. This phase centers on strategic accumulation. Institutions and whales often maintain price stability to avoid spooking retail investors. Minor dips trigger emotional selling, allowing large players to quietly amass XRP through ETFs, OTC trades, and other off-exchange channels without affecting market prices. ETFs lock XRP, OTC trades quietly move large amounts, and custodial wallets secure coins, all off-exchange. These stealthy outflows shrink available supply, explaining why XRP’s price hasn’t surged despite historic lows. The market is being primed for controlled growth, not a chaotic spike. XRP currently trades at $1.87, but with exchange supply at historic lows, a potential 2026 supply shock could spark major upside as reduced sell pressure meets strategic accumulation. Therefore, this is a long-term bullish setup. While retail waits for price spikes, institutions quietly accumulate, positioning to profit when scarce supply meets rising demand. As Diana notes, low exchange supply isn’t an instant pump, it reflects controlled accumulation and a strategic path toward a potential 2026 supply shock with leading banking giant Standard Chartered speculating a 330% rally for XRP next year. Conclusion Well, XRP’s sharp drop in exchange supply signals a strategic shift from retail to institutional control. While prices may not spike immediately, this quietly sets the stage for a potential supply-driven rally in 2026.

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