Crypto analyst Crypto Sensei (@Crypt0Senseii) has raised concerns about the available supply of XRP on exchanges. In a recent video, he estimated that “there’s only probably 1.5 to 3 billion XRP left on exchanges currently available.”
He argued that if large-scale buying occurs, the market may experience severe supply pressure. His comments come at a time when the cryptocurrency market is watching developments around exchange-traded fund (ETF) products and their potential impact on digital asset demand.
🚨 #XRP PRICE COULD GO PARABOLIC PRETTY QUICKLY!!! pic.twitter.com/oCfZ99kFF5
— CryptoSensei (@Crypt0Senseii) September 12, 2025
Potential Impact of Sudden Demand
Crypto Sensei explained that a sudden surge of investor interest could quickly exhaust the XRP available on trading platforms. With spot ETF approval potentially coming in October, he stated that $10 billion in demand could swiftly siphon the supply, leaving interested investors stranded.
Experts are already projecting inflows of up to $5 billion in the first month after the approval of the spot XRP ETF. Crypto Sensei suggests that these institutional products could drastically lower supply.
According to his remarks, such a sharp inflow could push through order books and reduce liquidity, creating conditions where XRP’s price would increase rapidly.
Ripple’s Escrow Management and Supply
Crypto Sensei also discussed Ripple’s escrow releases and how they could affect the circulating supply. Ripple unlocks 1 billion XRP from escrow each month but has consistently returned a large portion. “Almost every month they’ve relocked $700 million, 70%,” he noted, referencing Ripple’s practice of sending unused tokens back into escrow.
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He added that there was “one month where they relocked $670 million, which is 67%.” These figures indicate that a substantial share of newly released XRP does not enter circulation, which could limit the amount available to meet new demand.
ETF-Driven Demand Could Amplify Price Movements
Crypto Sensei argued that ETF-driven demand has the potential to put significant pressure on the XRP market. He said a rapid influx of institutional or retail investment could quickly absorb the limited supply available on exchanges, creating a potential supply shock, reducing liquidity, and pushing prices upward.
He described this scenario as the one he is waiting for, viewing it as a possible turning point for XRP in the digital asset landscape. With only a few billion XRP estimated to be freely circulating on exchanges, the market could shift drastically over the next few months, and large-scale buying from institutions and retail investors accelerates.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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