XRP Exchange Balances Drop to Lowest Level Since 2018 at 1.6 Billion Tokens
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 02 2026- Exchange Balance Plunge: XRP's exchange balances fell from 3.76 billion on October 8, 2025, to 1.6 billion by late December 2025, marking the lowest level since 2018, indicating a significant reduction in market liquidity that could lead to increased price volatility.
- Delayed Price Response: Despite the sharp decline in exchange balances, historical trends suggest that such reductions do not necessarily trigger price surges, as seen in 2018 when prices continued to decline, indicating a complex relationship between liquidity changes and market reactions.
- Data Coverage Limitations: Analysts highlight that Glassnode tracks data from only about 10 exchanges, failing to capture the full picture of XRP's circulation; expanding to 30 platforms revealed approximately 14 billion XRP held across exchanges, underscoring the impact of data limitations on market analysis.
- Complex Market Dynamics: The high liquidity of XRP means that its dynamic movements on exchanges make static reserve numbers unreliable for predicting market behavior, with analysts noting that factors like ETF inflows and regulatory developments may significantly influence demand beyond fluctuations in exchange reserves.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
