Headline: XRP’s supply looks big — but most of it can’t move. That could make the next bounce sharper than you think. XRP’s headline supply remains large, but real liquidity is much smaller — and that mismatch is shaping who feels the pain after the recent sell-off. Price and flows XRP has slid almost 50%, dropping from roughly $3.66 to about $1.85. That decline coincided with a clear pickup in inflows to exchanges, especially Binance, which handles the largest share of XRP trading (data: CryptoQuant, X). From around December 15, daily transfers to Binance surged, ranging between roughly 35 million and 116 million XRP — a sign of increased intent to sell. At the same time, the total amount of XRP held on exchanges has actually fallen and now sits near 1.5 billion XRP, suggesting traders are taking profits or moving balances even as others sell into weakness (data: X). Distribution matters Who holds XRP is crucial here. Over 6 million wallets contain 500 XRP or fewer, placing most participants firmly in the small-holder camp (data: XRPScan). By contrast, a small number of large wallets control a disproportionately large share of the supply. That means retail holders are relatively small, while the tokens that can meaningfully swing markets are concentrated. Not all supply is tradable Beyond holder concentration, a large portion of XRP is effectively illiquid: escrowed funds, account reserves, and protocol-level requirements lock up meaningful amounts, so headline circulating supply overstates how much is actually available to trade. At the same time, accumulation has become more expensive — buying 1,000 XRP today costs about $1,750, up from roughly $500 just over a year ago — pricing many new retail buyers out of the market. What this implies The combination of smaller retail positions, concentrated whale holdings, and a sizeable portion of XRP that’s not freely tradable creates a structural gap between headline supply and real market liquidity. That matters because if selling pressure eases and demand returns, even modest buying could tighten the market quickly and magnify price moves. Takeaway XRP’s on-chain picture shows a market where most holders are small, a lot of supply is locked, and available liquidity is thinner than headline numbers suggest. That dynamic can make rebounds sharper — and volatility larger — once selling subsides. Disclaimer: This content is informational and should not be taken as investment advice. Cryptocurrency trading carries high risk; do your own research before making any decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

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