XRP ETF “supply shock” fears face pushback as on-chain data shows 16B on CEXs
The post XRP ETF “supply shock” fears face pushback as on-chain data shows 16B on CEXs appeared on BitcoinEthereumNews.com.
XRP traders clash over whether spot ETFs and escrow rules are draining exchange liquidity, with validators citing 16B XRP on CEXs versus viral 1.5B shock claims. Summary A viral post claimed XRP ETFs had cut exchange balances to 1.5B coins, projecting a 2026 supply shock tied to the proposed CLARITY Act. An XRP Ledger validator countered that major exchanges collectively hold about 16B XRP, arguing markets remain liquid and highly responsive to new supply. Other traders pointed to escrow unlocks, ETF custody wallets and institutional accumulation as factors that could still tighten effective circulating supply over time. A debate over XRP supply constraints has emerged among cryptocurrency market participants following circulation of exchange balance data and claims that exchange-traded funds are rapidly depleting available liquidity. XRP and supply constraints A Dec. 27 post on social media platform X from account unknowDLT stated that XRP ETFs are absorbing supply, with approximately 1.5 billion XRP (XRP) remaining on exchanges and roughly 750 million absorbed in recent weeks. The post projected a potential supply shock by early 2026, linking the forecast to proposed regulatory legislation referred to as the “Clarity Act.” An XRP Ledger dUNL validator operating under the name Vet disputed the analysis on Dec. 28, providing data indicating exchange balances closer to 16 billion XRP rather than 1.5 billion. According to Vet’s response, the higher figure represents XRP readily available to market participants. Vet stated that exchange balances and order-book liquidity fluctuate based on price movements and market incentives, arguing that supply shock scenarios require immediate allocation imbalances rather than gradual accumulation trends. The validator noted that XRP holders can transfer tokens to exchanges within three to four seconds, creating dynamic rather than static supply conditions. “Markets are too dynamic to statically plot movements,” Vet wrote in the Dec. 28 post,…
Filed under: News - @ December 29, 2025 9:25 am