The supply of XRP on crypto exchanges has fallen to an eight-year low, yet the price remains below $2. Glassnode data shows only 1.6 million XRP are now held on exchanges, down from 3.76 billion in October 2025. This is the lowest level since 2018.
Lower supply usually boosts prices, as fewer coins are available for sale. Analysts have suggested that the decline in exchange balances could trigger a supply shock and a potential rally.
Despite this, XRP has struggled to rise. The price hovers around $1.8, showing that reduced supply alone is not enough to push it higher.
XRP briefly surged above $3 earlier in 2025, but gains were erased by ongoing selling, negative sentiment, and market volatility. Repeated attempts to break $2 have failed, reflecting weak demand and low buyer participation.
On-chain metrics show more than half of XRP’s circulating supply is now underwater, increasing the risk of panic selling. Major cryptocurrencies like Bitcoin, Ethereum, and Solana are also trending lower, adding pressure to XRP.
Overall, shrinking supply has not lifted XRP. The token closed 2025 lower and remains under pressure as 2026 begins, with no immediate recovery in sight.
