The amount of XRP held on exchanges has dropped to a seven-year low, with roughly 1.6 billion tokens currently stored on trading platforms. This represents a decline of about 50% from the peak of 3.76 billion in October 2025.
On-chain metrics
Two key on-chain metrics are currently being discussed in relation to XRP: the amount of XRP held on exchanges and the concentration of XRP among whale wallets. While both metrics sound bullish, they have different implications for the market. The concentration of XRP among whales has reached a record high, with wallets holding 10 million or more XRP controlling 68.5% of the circulating supply. However, this metric is more ambiguous than the exchange reserve figure, as it simply describes who owns XRP without providing insight into their intentions.
Exchange reserves
Exchange reserves, on the other hand, measure the amount of XRP readily available to be sold. When XRP is held on an exchange, it can be sold quickly and easily, making it a key indicator of sell-side liquidity. The current seven-year low in exchange reserves suggests that there is less XRP available to be sold, which could lead to more significant price movements when demand arises. The decline in exchange reserves means that there is less XRP positioned to be sold, which could lead to a more significant price response to incoming demand. This is because the price is set at the margin by the balance between buyers and sellers, and a lower readily available supply can result in larger price moves.
Implications
The combination of low exchange reserves and the potential demand catalyst created by the CLARITY Act could lead to a significant supply-demand imbalance. Understanding the mechanics of this imbalance is crucial for interpreting the market, rather than simply predicting price movements. The whale concentration figure, while often presented as bullish, is more nuanced and can be interpreted in different ways. A high concentration of XRP among whales could indicate either conviction-driven accumulation or a concentration of potential selling pressure.
Context
The context surrounding whale wallets and escrow activity adds further complexity to the supply picture. Large token movements can appear dramatic without directly translating into immediate sell pressure, making it essential to consider the broader context when interpreting on-chain data.
Based on reporting from crypto.news.
