XRP Exchange Balances Drop in 2025 as U.S. Spot ETFs Grow

Source: CoinEdition Original Title: XRP Exchange Balances Drop in 2025 as U.S. Spot ETFs Grow Original Link:

Key Highlights

• XRP exchange balances fell from over 4B to about 1.6–1.7B in 2025, marking a major supply reduction.
• Spot XRP ETFs surpassed $1B in assets, even as prices weakened toward year-end.
• XRP price lagged exchange outflows, showing supply declines alone did not drive upside.

Market Overview

XRP exchange balances have continued to trend lower through 2025, coinciding with expanding exposure through U.S.-listed spot exchange-traded funds and persistent price volatility. Market data indicate a decline in XRP held on centralized exchanges, while price performance has remained subdued heading into year-end, despite ongoing institutional participation.

According to on-chain figures reflected in recent charts, total XRP balances on centralized exchanges declined from above 4 billion tokens at the beginning of 2025 to approximately 1.6–1.7 billion XRP by the end of December. This represents one of the largest annual reductions in exchange-held XRP recorded during the period.

Exchange Outflows Persist Through 2025

The drawdown accelerated in the second half of the year, with an estimated 750 million XRP moving off exchanges over recent weeks. As of late December, approximately 1.6 billion XRP remained available on trading platforms. Such declines are typically associated with net outflows, indicating reduced exchange-side liquidity rather than increased near-term selling activity.

Despite these movements, XRP’s price action did not track exchange balances closely. XRP peaked above $3.50 during mid-2025, a period that coincided with stabilization in exchange reserves. However, as balances resumed their decline from September onward, prices weakened, falling toward the $2.00 level by year-end.

At the time of reporting, XRP was trading at $1.85, down 1.69% over the past 24 hours. The daily trading volume stood at $1.59 billion, with a market capitalization of $111.8 billion.

ETF Assets Grow Amid Price Weakness

Institutional exposure to XRP has increased through spot exchange-traded funds in the United States. These products have surpassed $1 billion in assets under management, reflecting capital allocation despite weak spot price performance.

The decline in exchange supply alongside rising ETF holdings highlights a shift in how XRP exposure is being held, though price action suggests that reduced exchange availability alone has not turned into upward momentum.

Near-Term Outlook Remains Range-Bound

According to market analysis, XRP is expected to remain range-bound in the near term. Research indicates that altcoins often struggle to gain traction until Bitcoin establishes a clearer market direction.

Future price movements are more likely to depend on measurable developments, including ETF asset growth, usage within payment systems, and sustained institutional participation, rather than short-term supply shifts or price volatility.