An analysis of 64 crypto exchanges found around 225 million XRP listed for sale at prices up to $5. That is far less than the total held in exchange wallets, because wallet balances include tokens whose owners may not want to sell. Whether the thin supply moves the price depends on future buying demand and on how many holders sell.
An analysis of 64 crypto exchanges found around 225 million XRP listed for sale at prices from the current market level up to $5. The study covered 171 trading pairs, including XRP/USD, stablecoins, euros and other currencies.
Exchange wallets hold far more XRP than traders offer
The analysis estimated that around 35 million XRP was listed for sale within 2% above the market price. Buyers, meanwhile, had placed orders for around 44 million XRP within 2% below the price.
On selected major exchanges, the figure for XRP listed up to $5 was around 100 million. Binance held around 2.6 billion XRP in its wallets, but only 2.8 million XRP was listed for sale within 2% of the market price.
The gap exists because exchange wallets hold tokens that belong to customers, who may not want to sell. Only tokens that traders have offered for sale appear in the listed orders, and that amount can change as traders add or remove sell orders.
A hypothetical $1 billion purchase could absorb XRP listed up to $5
The researcher used a hypothetical $1 billion purchase to illustrate the point. Based on the study's figures, such a purchase could buy all the XRP listed for sale up to $5. That does not mean XRP will reach $5, because the number of sellers and available tokens can change.
Large investors may also buy XRP through private deals rather than directly through exchanges. Such deals can help them purchase large amounts without placing all their orders on public markets.
Garlinghouse points to supply and demand
Ripple CEO Brad Garlinghouse has linked XRP's value to supply and demand. He said: "Price is very simple. Supply demand."
XRP has a maximum supply of 100 billion tokens, but the amount available for sale depends on how many holders are willing to sell at a given price. Evernorth reported holdings of around 473 million XRP. Tokens held by large investors or treasuries may remain outside the market for a period, but their impact on available supply depends on whether those holders decide to sell or use them.
Source: Coinpedia Fintech News
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