Concerns over XRP’s dwindling availability on exchanges have grown recently, and Versan Aljarrah, founder of Black Swan Capitalist, has shared his view on the current market structure. He remarked that “the majority of XRP on exchanges is already gone,” a statement that reflects what data has shown for months.
XRP reserves on trading platforms continue to fall as more tokens move into private wallets. The steady outflow signals that holders are securing their assets for the long term, reducing the liquidity available for traders.
This movement indicates that circulating liquidity for XRP is becoming increasingly limited. When the available supply diminishes while long-term interest remains, market dynamics can change rapidly.
Investors have often viewed low exchange reserves as a signal of accumulation, especially when supply metrics continue trending downward. Aljarrah’s statement therefore points to a structural tightening of XRP’s available supply, which could eventually force its price upward once demand rises.
Potential for a Supply Shock
If Aljarrah’s assessment proves accurate, XRP could be approaching a point where normal trading demand overwhelms the remaining market liquidity, leading to a supply shock. A supply shock occurs when demand surges while available tokens are insufficient to meet that buying pressure.
In such situations, price adjustments can happen swiftly as traders compete to obtain scarce assets. In the case of XRP, this potential supply shock would be amplified by how concentrated holdings have become outside exchanges.
Many holders are reportedly positioning their tokens for long-term use within institutional payment systems or storing them securely in offline wallets. That trend reduces the number of XRP tokens readily available for short-term trading and creates a supply bottleneck that could heighten volatility when new demand appears.
The majority of XRP on exchanges is already gone. With so little liquidity left, any significant demand will force the market to absorb the remaining supply instantly.
— Black Swan Capitalist (@VersanAljarrah) October 19, 2025
What Will Happen to XRP’s Price?
When supply constraints coincide with renewed buying activity, market conditions typically favor price appreciation. XRP has already seen increased institutional and retail attention, and moderate demand could have a pronounced multiplier effect. With the token’s liquidity pool shrinking, any large-scale accumulation could move prices quickly.
Aljarrah highlights an important distinction between price speculation and actual market structure. If exchanges indeed hold significantly fewer tokens, market makers and traders would need to adjust to thinner order books.
This would reduce the ability of the market to absorb large buy orders smoothly, creating an environment where small waves of buying could push prices higher than expected.