An impending supply shock has been predicted by members of the XRP community, who also highlighted a pattern of diminishing exchange holdings of the cryptocurrency. Notably, several well-known members of the XRP community are predicting an impending supply shock that might increase scarcity and boost demand for XRP. These people provide data that appears to show a pattern of falling XRP holdings seen with exchanges.
XRP amounts held by the top cryptocurrency exchanges as of July 2022 are shown in the data, which was submitted by anonymous community member Kang Space. The data is still debatable, though. In response to Chad Steingraber, Creative Director at Ghostpunch Games, Kang Space made this disclosure.
According to Steingraber, a combination of low exchange supply and an order book buy-up led to the recent XRP surge to $50 on Gemini.
A larger-scale occurrence of this phenomena, according to Steingraber, might lead to more significant XRP price increases if exchanges witness a decline in supply in the face of rising demand. Steingraber’s prediction was set in context by Kang Space, who provided a spreadsheet listing exchanges’ low XRP holdings. According to the statistics, the following holdings exist: Upbit has 3.3 billion XRP, Binance 494 million, Crypto.com 205 million, Uphold 18 million, and Coinbase 10 million.
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Community Member Response
Dig Perspectives, a well-known member of the XRP community, highlighted the disclosure while recalling the criticism he faced for disclosing these facts. It is noteworthy that Ripple stopped selling XRP to organizations, including exchanges, which are not ODL partners. The XRP owned by these non-ODL exchanges has allegedly continued to decline as a result of this sales suspension, according to prominent influencers.
What would happen if non-ODL exchanges were no longer able to obtain XRP, asked Dig Perspectives? He emphasized how Ripple and the consumers of these exchanges still purchase their XRP from the platforms.
Data Provided Remains Contested
Even though the pattern makes a strong case, the screenshot’s data is still in question. Notably, the exchange held more than 2.8 billion XRP as of August, according to Binance’s most recent PoR report.
Additionally, Uphold presently holds more than 2.2 billion XRP worth more than $1.4 billion. According to reports, this amount was $1.06 billion in December. Data from the XRPL explorer XRPScan, however, shows that Coinbase has more over 1.9 billion XRP spread across numerous wallets.
These numbers are far higher than the Kang Space spreadsheet’s values. However, other supporters question if the spreadsheet’s numbers really reflect the XRP that the exchanges actually control. It is noteworthy that these sites have not made such data public.
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