3 Billion XRP Evaporate from Global Exchanges…Is a Shortage Coming for Global #1 'Upbit'?

▲ XRP/AI-generated image ©

Over 3 billion XRP (Ripple) have evaporated from global virtual asset exchanges in 14 months, making a massive supply shock visible. Despite explosive accumulation by whales and institutional investors, coupled with a positive regulatory environment leading to a significant outflow of funds from exchanges, a strange phenomenon is occurring where prices are falling due to a lack of liquidity in the derivatives market, drawing the attention of investors.

According to the crypto media outlet Finbold on April 23 (local time), the supply of XRP on exchanges has drastically decreased over the past 14 months, significantly reducing the amount available for sale. According to Chachakobe4er, an on-chain data analyst on social media X, the XRP supply on 41 virtual asset exchanges has decreased by over 3 billion since February 24, 2025, currently standing at approximately 16 billion. During this period, the amount available for sale on exchanges plummeted by 16%, and in the last 24 hours alone, 3.33 million tokens, valued at approximately $4.69 million, were withdrawn. Notably, Upbit, South Korea's largest exchange, holds the largest volume with approximately 6.47 billion units, followed by Binance (2.54 billion units), Bithumb (1.82 billion units), and Uphold (1.64 billion units).

This large-scale reduction in supply is attributed to a strong increase in demand from whale investors, presumed to be institutions. Furthermore, with regulatory clarity secured since the launch of the Trump administration, expectations that Ripple Labs' share of the global cross-border payment market will expand through its financial products have fueled massive accumulation. According to Santiment on-chain data shared by Evernos Holdings, the number of long-term investors holding between 1,000 and 100,000 tokens increased to 1.1 million, and these investors accumulated an additional approximately 11 million tokens daily in early April.

The outflow of XRP from exchanges has accelerated further this year. In February, investors withdrew a staggering 7 billion tokens from exchanges, marking the largest monthly outflow since November 2025. Additionally, in early this month, the XRP spot ETF listed on the U.S. market experienced its largest weekly cash inflow since mid-January, clearly indicating real demand from institutional and long-term investors in both on-chain data and financial products.

However, despite this explosive reduction in sellable supply and fierce demand from whales, the actual price of XRP has failed to perform well. Unlike the strong buying trend that began in early 2025, the token price has plummeted by over 36%, trading around $1.42 as of Thursday. The core reason for this strange phenomenon, which seems to defy the basic principles of supply and demand, lies in the depletion of liquidity, primarily in the derivatives market.

According to CoinGlass data, the total open interest for XRP across all exchanges has not recovered to its previous levels since the virtual asset market crash on October 11. While whales are actively accumulating physical assets, speculative liquidity and trading vitality in the derivatives market have significantly decreased. This means that the strong positive news of a sharp drop in exchange supply is being held back from leading to an actual price rally.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*