XRP community figures have predicted an imminent supply shock, highlighting a pattern of declining XRP holdings observed with exchanges.
Some prominent XRP community figures are forecasting a looming XRP supply shock that could bolster scarcity and drive demand for XRP. These individuals cite data suggesting a pattern of declining XRP holdings observed with exchanges.
Declining XRP Holdings?
The data, provided by pseudonymous community member Kang Space, presents XRP balances held by the leading crypto exchanges as of July 2022. However, the information remains contested.
Kang Space’s disclosure came as a reply to Chad Steingraber, Creative Director at Ghostpunch Games. Steingraber asserted that the recent XRP pump to $50 on Gemini was triggered by a confluence of low supply on the exchange and an order book buy-up.
Why did Gemini spike the price of #XRP to $50?
It wasn’t a glitch, it was low supply vs order book buy up.
This shows the true reveal… —MAGIC—
They showed you their hand and the true future.
Now, imagine EVERY exchange doing this AT THE SAME TIME.
It’s coming… https://t.co/xZbQHq7IJG
— Chad Steingraber (@ChadSteingraber) August 13, 2023
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Steingraber suggested that such a phenomenon on a larger scale would result in more substantial XRP price pumps if exchanges experience a decrease in supply amid surging demand.
To contextualize Steingraber’s projection, Kang Space presented a spreadsheet detailing low XRP balances held by exchanges. The data indicates the following holdings: Upbit, 3.3B XRP; Binance, 494M XRP; Crypto.com, 205M XRP; Uphold, 18M XRP; Coinbase, 10M XRP.
Prominent XRP community figure Dig Perspectives highlighted the disclosure, recalling the backlash he received for presenting these details.
I caught a lot of hell for this in the past from the #CancelCulture CT Trolls, but what happens if non-#ODL exchanges can`t get #XRP anymore? Remember #Ripple stopped selling to exchanges back in 2019. Don`t forget #Ripple also buys back off the same exchanges we do,too. 👁️👁️ https://t.co/Qkr5s71ZO5
— Digital PerspectivesPermaBull🪝 (@DigPerspectives) August 13, 2023
Notably, Ripple ceased the sale of XRP to institutions, including exchanges, that are not its ODL partners. Prominent influencers believe the XRP held by these non-ODL exchanges has continued declining due to this sales suspension.
Dig Perspectives posed a thought-provoking question: “What happens if non-ODL exchanges can’t get XRP anymore?” He called attention to the fact that Ripple and the users of these exchanges continue to buy their XRP from the platforms.
Dissecting the Facts
While the pattern presents a compelling argument, the data provided in the screenshot remains contested. Notably, Binance’s latest PoR report showed that the exchange holds over 2.8 billion XRP as of August.
Moreover, Uphold currently has over 2.2 billion XRP valued at an excess of $1.4 billion. As reported, this figure was at $1.06 billion last month. Meanwhile, data from XRPL explorer XRPScan indicates that Coinbase holds over 1.9 billion XRP across multiple wallets.
These figures are much higher than the values presented in the spreadsheet from Kang Space. However, several proponents ask if the spreadsheet’s figures represent the XRP actually owned by the exchanges. Notably, these platforms have failed to make such data public.