I see more and more analysts talking about an interesting phenomenon: the XRP supply shock. With the launch of XRP ETFs in November, we're witnessing something special happening in the markets.

It's about XRP being massively withdrawn from exchanges. An analyst recently shared data from Glassnode: the amount of XRP on centralized exchanges has decreased from 3.76 billion to 1.6 billion in three months. This means investors are buying their XRP and then storing it—usually for the long term. This process, where the available supply decreases, is called a supply shock crypto scenario.

What’s interesting is that while the supply is dropping sharply, the price isn’t rising accordingly. XRP is currently around $1.35, well below the record high of $3.65 last year. This seems contradictory, but it’s related to demand. The crypto market isn’t performing spectacularly, so demand for XRP is low. Once that changes, the supply shock crypto effect could really kick in.

We’ve seen this before historically. In November 2024, the same thing happened: XRP surged over 500% in two months when demand suddenly shot up, even though the supply was already low. If the market picks up now, the same dynamics could occur. With less XRP on exchanges and more demand, prices could rise faster than you expect.

The ETFs have already raised over $1.2 billion, so many tokens are also coming through that route. Analysts say that if the market regains momentum, we could see a significant supply shock crypto movement. So it’s definitely something to watch in the coming months.