Ripple’s XRP may have a large total supply, but most of it isn’t easy to access or trade. Over six million wallets hold only small amounts, while the XRP that can actually move in the market is getting smaller.
If sell pressure falls and demand returns, this gap could become important. Here’s why.
The pressure to sell is HIGH!
XRP is facing heavy selling after a price drop. The token has fallen nearly 50%, sliding from highs around $3.66 to near $1.85.
This move was followed by a clear rise in Exchange Inflows, especially to Binance, which handles the largest share of XRP trading.
Source: CryptoQuant
After weeks of relatively stable activity, inflows picked up from the 15th of December. Daily Transfers to Binance jumped to between 35 million and 116 million XRP, so there was increased intent to sell.
Source: X
At the same time, total XRP held on exchanges has continued to fall, now sitting near 1.5 billion XRP. Traders are selling into weakness, even with the overall exchange supply shrinking.
Retail holds less, costs keep rising
Source: X
The way XRP is distributed helps explain who is feeling it most.
Recent data showed that more than 6 million wallets hold 500 XRP or fewer, placing most participants at the small-holder end of the spectrum. Meanwhile, wallets holding millions of XRP are few in number but control a large share of the supply.
On paper, XRP’s circulating supply looks large, but the headline supply figures overstate how much XRP is actually liquid and tradable.
Source: XRPScan
XRP has also become far more expensive to accumulate. Buying 1,000 XRP now costs around $1,750, up from roughly $500 a little over a year ago. This rising entry cost limits how much new retail can buy during pullbacks.
At the same time, a significant portion of XRP is escrowed or functionally locked within the ledger through account reserves, network states, and protocol-level requirements. This reduces the amount that can freely move in the market.
The result is a big gap.
Smaller wallets hold less, while buying requires capital that many retail participants simply do not have. With retail mostly priced out and a lot of XRP not freely available, even a small rise in demand could make a tighter market much faster.
Final Thoughts
- XRP is under heavy sell pressure, but exchange balances are down – supply is shrinking.
- Even modest demand could trigger sharp price moves.
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