A potential shortage of XRP, the digital currency associated with Ripple, is generating considerable excitement among market observers, who anticipate a significant price increase. Recent data indicates a dramatic decrease in XRP availability on the Coinbase exchange, plummeting by 90% in the past three months. This reduction coincides with growing demand from Ripple’s treasury, leading some experts to forecast that XRP could soon reach a value of $5.
XRP Inventory on Coinbase Plummets 90% in Just Three Months
According to on-chain data sourced from XRPWallets, Coinbase’s accessible XRP reserves have undergone a sharp contraction. The exchange’s holdings in cold storage have shrunk dramatically, falling from approximately 970 million tokens distributed across 52 wallets in early June 2025, to a mere 99 million XRP spread across only 6 wallets by mid-September 2025. This represents a substantial 89.79% decrease in cold wallet reserves over the specified period.
The precipitous drop in Coinbase’s XRP holdings has spurred investigations into the factors driving this shift. Furthermore, the consolidation from 52 wallets to just 6 suggests a significant strategic adjustment in the way the exchange manages its XRP holdings.
Despite the existence of a total supply of 100 billion XRP, market analysts are suggesting the potential for a supply squeeze, fueled by escalating demand from corporate treasuries, coupled with developments surrounding potential Exchange Traded Funds (ETFs). To date, eight companies have adopted XRP-centric treasury strategies, reflecting increasing institutional confidence in the cryptocurrency. Leading holders within these treasuries include Trident Digital Tech Holdings’ and VivoPower International, Wedbush International, each maintaining XRP holdings valued at over $100 million.
Concurrently, the Securities and Exchange Commission (SEC) is evaluating 11 applications for spot XRP ETFs submitted by prominent asset management firms such as Bitwise, Grayscale, Fidelity, VanEck, Franklin Templeton, and ARK Invest. The Rex-Osprey XRP ETF is slated to launch this week, operating under the ’40 Act framework, and has the potential to further amplify institutional interest. The subsequent rise in institutional demand will put additional pressure on XRP’s circulating supply.
Beyond the influence of corporate treasuries and ETFs, XRP is seeing increased demand due to its expanding applications in several sectors, including cross-border payments, tokenized real-world asset (RWA) settlement, stablecoin bridging, interbank transactions, and decentralized finance initiatives.
Is XRP Poised for a Major Price Surge?
Amid market uncertainty, the XRP price has reclaimed support at the $3.0 level, accompanied by a 12.47% surge in daily trading volume, reaching $5.7 billion. Moreover, data from Coinglass shows the open interest in XRP futures remains robust at $8.57 billion.
Using Elliot Wave analysis, well-known cryptocurrency analyst Dark Defender notes that XRP has successfully surpassed its initial weekly resistance threshold, a possible indicator of further price increases. According to their technical analysis, key target levels on the upside are projected at $4.39 and $5.85, based on Fibonacci extensions. Potential support levels are identified at $3.01 and $2.85.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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