A shift is underway in the crypto markets that could trigger a dramatic move for XRP. Rarely do we see both demand and supply signals align so clearly. The combination may be setting the stage for a price explosion.
Institutional Inflow Potential
In his recent X post, Arthur drew attention to looming institutional demand hitting XRP. He referenced forecasts that spot-style XRP ETFs could attract roughly $4 billion to $8 billion in inflows.
These projections come from banking models mirroring previous moves seen in other major cryptos. The arrival of this capital would directly pull demand into the spot market.
🚨 XRP Supply Crisis Could Ignite a Price Explosion
JPMorgan estimates $4–8B in inflows into upcoming $XRP ETFs.
Institutional and retail demand are about to surge but…👉 There’s barely any XRP left on exchanges.
🔹 Binance reserves down to 2.79B XRP, the lowest in almost a… pic.twitter.com/LwG8r3Ko9s
— Arthur (@XrpArthur) November 12, 2025
Shrinking Exchange Supply
On the supply side, visible XRP balances on centralized exchanges are decreasing. Analytics from CryptoQuant show exchange reserves dropping by more than 3 % since early October.
Meanwhile, aggregate data suggest fewer than 5 billion XRP — about 10 % of the circulating supply — may reside on major exchanges. With fewer tokens available for sale, the market becomes more sensitive to inflows.
When Demand Meets Tight Supply
The dynamics become potent when large inflows coincide with limited sell-side liquidity. If ETF issuers and institutional buyers start aggressively acquiring XRP while exchange reserves are low, the result could be steep upward price pressure.
Any sudden clearing of orders could force later buyers into higher price bands. This “perfect storm” of rising demand and falling visible supply is rare in the crypto world.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
Risks and Critical Variables
This scenario is not risk-free. For one, exchange reserve figures are snapshots and may reverse quickly if tokens are moved back on-chain for liquidity. Moreover, ETFs may stagger purchases rather than go all-in. Macro events or regulatory intervention could pause the flow of funds entirely.
And while forecasts cite billions, actual early inflows might land far below those levels. It is also notable that short-term price action has shown profit-taking and volatile swings even amid ETF optimism.
What to Watch
Key metrics to monitor include the launch and inflows into XRP-based ETFs, real-time exchange reserve data for XRP, and price and volume behavior of XRP, especially a breakout above critical resistance levels. If inflows accelerate while reserves continue to shrink, the catalyst for a sharp move will be validating.
In short, Arthur’s observation highlights a compelling setup: large potential institutional inflows for XRP plus visibly shrinking exchange supply create the conditions for explosive price action. If the demand wave hits while liquidity is thin, XRP may move far faster than conventional models expect.
Traders and institutional observers alike should keep a very close eye on this interplay—because when supply runs out, the price must rise.
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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