Although Ripple's XRP has a large total supply, much of it is not easily accessible or tradable. Over six million wallets hold only small amounts, while the actual amount of XRP that can be traded in the market is shrinking.
If the selling pressure eases and demand returns, this gap could become a decisive factor. Here are the details.
Selling Pressure Is Extremely High!
XRP is facing strong selling pressure after its price drop. The coin has fallen by nearly 50%, from its highs around $3.66 to near $1.85.
This move was followed by a significant increase in inflows to exchanges, especially to Binance, which holds the largest share of XRP trading.
After weeks of relatively stable activity, inflows began to rise starting December 15. Daily transfers to Binance jumped to between 35 million and 116 million XRP, indicating increased selling intent. Meanwhile, the total amount of XRP held on exchanges continues to decline, now approaching 1.5 billion XRP. Traders are selling during periods of weakness despite the overall supply on exchanges shrinking.
Retail holders own less, and costs continue to rise.
The distribution of XRP helps explain who is most affected by this situation.
Recent data shows that more than 6 million wallets hold 500 XRP or less, placing most participants in the microholder category. In contrast, wallets holding millions of XRP are few in number but control a significant share of the supply.
On paper, the circulating supply of XRP appears large, but the headline figures overestimate the actual liquid and tradable amount.
Accumulating XRP has become significantly more expensive. Buying 1,000 XRP now costs around $1,750, compared to around $500 over a year ago. This increased cost of entry limits the ability of new retail investors to buy during dips. At the same time, a significant portion of XRP is functionally locked or reserved within the ledger through account reserves, network requirements, and protocol-level rules. This drastically reduces the amount freely available in the market.
The result is a substantial gap.
Smaller wallets hold smaller amounts, while purchasing requires capital that many retail participants lack. With most retailers out of the market due to the high pricing, and a large amount of XRP not freely available, even a small increase in demand could tighten the market even further and more rapidly.
The bottom line:
- XRP is under strong selling pressure, but exchange balances are decreasing – supply is shrinking.
- Even modest demand can trigger sharp price movements.
This situation makes the distribution of whales and the rich list a more significant indicator than the current price movement, as the concentrated group controls the true liquidity of the currency.
