XRP balances on centralized exchanges have declined sharply according to Glassnode data, as U.S. spot ETFs continue absorbing supply with over $1 billion in inflows.
XRP exchange balances are showing significant declines according to on-chain data, as U.S. spot ETFs continue absorbing supply with over $1 billion in inflows since their November launch.
According to Glassnode data, XRP balances on centralized exchanges have declined significantly throughout 2025. The data shows a notable acceleration since September, with balances falling sharply as tokens move off public order books. However, analysts dispute the exact figures, with some tracking services showing different totals.
The primary driver behind this exodus has been the launch of U.S. spot XRP ETFs, which debuted in November 2025. Six active ETF products have now launched, with 11 total listings on the DTCC. Cumulative inflows have surpassed $1 billion, establishing a new channel for institutional demand that pulls XRP off exchanges and reduces spot market liquidity.
The sharp decline in exchange-held supply represents a structural shift in how XRP exposure is being held. Rather than sitting on exchange order books, a growing portion of circulating supply is now locked in ETF custody arrangements, effectively removing it from immediate trading access.
Some analysts argue this creates conditions for a supply shock if demand surges, pointing to the speed of ETF accumulation. The $1 billion inflow milestone was reached within five weeks of launch, the fastest pace for any crypto fund since Ethereum ETFs launched. However, not everyone agrees. XRP Ledger validator Vet has pushed back on supply shock narratives, noting that approximately 16 billion XRP remains readily available across holder wallets and can be transferred to exchanges within seconds.
Despite the tightening supply dynamics, XRP price has weakened, trading around $1.85, down from peaks above $3.50 in mid-2025. The disconnect between declining exchange supply and falling prices suggests that reduced availability alone is not sufficient to drive upward momentum without corresponding demand pressure. Market participants will be watching whether year-end positioning or renewed ETF inflows can shift the balance. The situation remains fluid as 2025 closes, with structural supply changes potentially setting the stage for 2026 price action.
This is a developing story as supply dynamics continue to evolve heading into the new year.
XRP surpasses BNB in market cap as ETF inflows hit $1.18B cumulative total and exchange supply drops to 8-year low.
XRP spot ETFs posted $45M in weekly inflows while Bitcoin and Ethereum funds faced massive outflows, as the Fear & Greed Index hit its lowest since the FTX collapse.
Bitcoin, Ethereum, and XRP investment products saw $1.73 billion in withdrawals last week, marking the largest exodus since mid-November 2025.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
