XRP traders are arguing right now over one big question:
Is XRP running out on exchanges, or is there still plenty of supply?
It all started with a viral post on X that claimed spot XRP ETFs are draining liquidity fast. According to that post, only about 1.5 billion XRP is left on centralized exchanges, and around 750 million XRP has already been absorbed in recent weeks. The post warned this could lead to a major supply shock by early 2026, especially if new crypto laws like the proposed Clarity Act move forward.
But not everyone agrees.
An XRP Ledger validator known as Vet pushed back hard on those claims. He said the numbers are way off and that exchanges actually hold closer to 16 billion XRP, not 1.5 billion. According to him, the market is still very liquid, and XRP supply is nowhere near drying up.
Vet explained that exchange balances change all the time. When prices move, people move their XRP. Tokens can be sent to exchanges in just three to four seconds, so supply isn’t locked or stuck. Because of that, he says it’s misleading to talk about a supply shock based on slow, steady buying.
“Markets don’t work like that,” he said. Price moves depend on timing, demand, and incentives — not just long-term accumulation.
Other traders jumped into the debate too. Some questioned whether exchange wallets are being counted correctly. One analyst pointed out that Upbit alone holds around 2 billion XRP, and that’s spread across multiple wallets. Vet responded by saying his numbers were actually conservative estimates, not inflated ones.
Still, some traders believe supply could tighten over time. They pointed to things like:
- Monthly escrow unlocks
- ETF custody wallets
- Institutional investors quietly accumulating XRP
One trader claimed ETFs alone now hold about 1% of total XRP supply, and that number could keep growing.
Vet acknowledged that Ripple does help move XRP for ETF needs, but he stood by his main point:
A real supply shock happens when demand suddenly overwhelms supply — not when institutions buy slowly over months.
According to him, with 16 billion XRP on exchanges and more held by Ripple for operations, there’s still plenty of liquidity to meet current demand.
In the end, this debate shows just how divided the XRP community is right now. Some see the early signs of a supply squeeze. Others say the market is far too flexible and fast-moving for that kind of shock to happen anytime soon.
One thing is clear:
With spot XRP ETFs now live, exchange balances and supply trends are going to stay under the microscope.
