XRP reserves on cryptocurrency exchanges have plummeted to a seven-year low of approximately 1.6 billion tokens. This marks a significant reduction from the October 2025 peak, where reserves were double the current amount.
Major exchanges such as Binance and Upbit have reported a combined outflow of 228 million XRP, contributing to the declining reserves. The reduction in exchange-held XRP is attributed to increased absorption by exchange-traded funds (ETFs), which have acquired nearly a billion tokens.
Despite the decrease in exchange reserves, Ripple continues to hold a substantial amount of XRP, with roughly 36 billion tokens still in escrow. This shift in XRP distribution is influencing market dynamics, as observed in recent price consolidation trends.
The declining exchange reserves could impact liquidity and trading activity, potentially affecting XRP's market behavior. However, the full implications of these changes remain to be seen as the market adjusts to the new distribution of XRP holdings.
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