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Viral claims that XRP spot ETFs are draining exchange supply and leaving only 1.5 billion tokens available have been sharply disputed by on-chain data showing approximately 16 billion XRP remains on centralized exchanges—more than 10 times the amount suggested by widely-shared social media posts.
An XRP Ledger validator operating under the name Vet publicly challenged the supply shock narrative on December 28, arguing that the claims fundamentally misunderstand market liquidity dynamics and rely on incomplete data.
The dispute highlights growing tensions between viral trading narratives and verifiable blockchain data as U.S. spot XRP ETFs enter their early months of operation.
Vet argued that market liquidity is dynamic fluctuating with price movements and incentives, and that supply shocks require sudden allocation imbalances rather than gradual accumulation.
“Markets move too quickly to be captured in static charts,”
Vet explained, noting that XRP can be moved to exchanges in just three to four seconds which keeps XRP exchange supply constantly fluid. Vet also noted that published figures are conservative estimates; for instance, Upbit alone holds around 2 billion XRP across four wallets representing only a fraction of its total exchange supply.
Some market observers, like commentator Zach Rector, questioned the accuracy of exchange wallet identifications while trader Dman Trader highlighted factors that could tighten effective circulating supply such as custody structures, escrow releases, and institutional accumulation.
Dman claimed that ETFs hold roughly 1% of total XRP supply in dedicated XRP Ledger wallets a figure accumulated over recent months.
Despite these concerns, Vet maintained that with 16 billion XRP on exchanges and additional billions in Ripple operational accounts, current market liquidity is more than adequate. The validator underscored that genuine XRP supply shocks require immediate and significant allocation gaps not slow institutional buying.
The discussion reflects differing interpretations of XRP exchange supply within the trading community especially following the launch of spot XRP ETFs in the U.S. Market participants continue to analyze exchange balance trends and their potential impact on price discovery with XRP exchange supply remaining a key metric for traders.
