A sharp decline in XRP reserves on major exchanges has caught the attention of market observers as demand pressures build ahead of the expected launch of XRP exchange-traded funds (ETFs). Arthur (@XrpArthur), a crypto analyst on X, shared data from CryptoQuant showing Binance’s XRP reserves falling to 2.79 billion tokens. This marks its lowest point in nearly a year. He noted that the combination of low reserves and potential ETF inflows could set the stage for what he called a “perfect storm.” The chart indicates a steady drawdown since early 2025, suggesting that available XRP for trading is shrinking even as investor interest continues to rise. Arthur pointed out that JPMorgan estimates between $4 billion and $8 billion could move into upcoming XRP ETFs once they go live . With that scale of capital entering the market and limited tokens available on exchanges, the setup could produce significant upward pressure on XRP’s price. XRP Supply Crisis Could Ignite a Price Explosion JPMorgan estimates $4–8B in inflows into upcoming $XRP ETFs. Institutional and retail demand are about to surge but… There’s barely any XRP left on exchanges. Binance reserves down to 2.79B XRP, the lowest in almost a… pic.twitter.com/LwG8r3Ko9s — Arthur (@XrpArthur) November 12, 2025 ETF Demand Could Strain Liquidity JPMorgan’s estimate highlights the growing institutional confidence in XRP’s market readiness. ETFs have historically attracted strong demand from both professional and retail investors seeking exposure to digital assets through regulated investment products. Other experts, like Canary Capital CEO Steve McClurg, have projected inflows of up to $5 billion for these products in the first month. If the projected inflows materialize, the available liquidity on exchanges may not be sufficient to absorb the surge in buying activity. The shrinking supply on exchanges mirrors supply squeezes seen in other assets, where diminishing availability leads to accelerated price increases. When fewer tokens are available for sale, buyers must compete for a smaller pool of supply, often pushing prices higher. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Investors Position for a Potential Upswing The chart shows XRP trading at $2.3 following months of consolidation after a mid-year rally that sent it to its all-time high. The digital asset’s price has climbed since then as the market anticipates the launch of the Canary Capital spot XRP ETF , and the increased trading activity following this launch, combined with shrinking exchange balances, could cause the asset’s price to rise sharply. Institutional entry through ETFs will also alter the composition of XRP ownership. As more tokens move into custody solutions rather than remain on exchanges, market liquidity could tighten further. Reduced supply tends to increase price sensitivity. This means even modest buying activity could result in sharp price movements. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Here’s Why Binance Could Ignite XRP Price Explosion Soon appeared first on Times Tabloid .
