XRP Price Drops 0.371% Amid 95% Exchange Reserve Reduction

XRP's latest price was $2.97, down 0.371% in the last 24 hours. The cryptocurrency has seen significant shifts in its market dynamics, particularly with the reduction of its reserves on major exchanges. Coinbase, for instance, has seen a dramatic decrease in its XRP holdings, from 970 million units to just 32.8 million units. This 95% drop indicates a substantial outflow of tokens, suggesting strong demand from both institutional and retail buyers. The rapid reduction in available supply on centralized platforms can create upward price pressure if demand remains steady or increases. This situation often gives confidence to traders expecting higher prices, especially when major exchanges show sustained outflows over time.

Supply shocks, such as the 95% reduction of XRP exchange reserves, can disrupt normal market conditions and lead to price increases. When buyers continue to acquire XRP while exchanges hold limited amounts, the resulting scarcity can push prices higher. Market participants view this as a sign of accumulation, where holders plan to retain assets rather than trade them quickly. Historically, significant outflows from exchanges have correlated with price increases, as coins become less available to meet demand. XRP’s current situation aligns with that trend, making it a focal point for investors tracking exchange flows.

If the current rate of XRP accumulation continues, the reduced exchange reserves could set the stage for stronger pricing. As liquidity tightens, it may force buyers to pay more to acquire the same amount of XRP. For holders, this can translate into notable gains if market conditions support continued demand. The next chapter of cross-border payments is quietly unfolding, setting the stage for programmable ledgers and audited stablecoins to move from theory to mainstream practice. As regulatory barriers fall, the focus is shifting away from speculation and toward the infrastructure that can settle value across borders with near-instant finality. The XRP Ledger’s true potential will be unlocked and adoption will accelerate once clear regulations are established. This regulatory green light has transformed cautious interest into an active strategy. All evidence points to XRP and XRPL being used after the laws are effective. As Ripple has orchestrated acquisitions, licenses, expansion of trust lines on the ledger to facilitate more transactions flowing through XRP.

Ripple’s recent acquisitions and pursuit of banking and payment licenses illustrate a deliberate effort to integrate XRPL into the global financial system. By securing regulatory approvals and expanding its corporate footprint, Ripple is positioning the ledger as a backbone for high-volume settlement, not merely a platform for speculative trading. These moves signal a clear intent to bridge traditional finance with tokenized, on-chain assets. The XRP Ledger is uniquely designed for institutional adoption. Its native decentralized exchange, low transaction costs, and trust-line architecture enable seamless issuance and transfer of tokenized assets, including stablecoins backed by real-world assets (RWA). Each transaction consumes a minute amount of XRP as a fee, providing a deflationary mechanism while ensuring network security and efficiency. Ripple’s launch of RLUSD, a U.S. dollar–pegged stablecoin, exemplifies how XRPL can serve as a settlement layer for RWA-backed digital currencies. Partnerships with top financial institutions and asset managers demonstrate the tangible potential of audited, collateralized stablecoins for seamless, instant cross-border transactions, independent of traditional banking systems. While no one can predict XRP’s future price, the infrastructure being built points to a network whose value lies in utility rather than speculation. The combination of legal clarity, strategic acquisitions, and proven technical capacity places XRPL at the heart of the emerging tokenized financial ecosystem. The real story is not a price target but a structural shift: a global payment network ready to operate at scale once the laws are effective—and now increasingly difficult for institutions to ignore.

An old research paper is back in the spotlight and stirring conversations in the crypto world. The paper, co-written in 2018 by Robert Mitchnick, now BlackRock’s Head of Digital Assets, and Stanford economist Susan Athey, tried to answer a bold question on how much Bitcoin (BTC) and XRP are really worth. At the time, Bitcoin traded near $7,000, while XRP hovered around $0.50. Their prices had soared the year before, but no one could clearly explain why. Mitchnick and Athey modeled cryptocurrencies as money, not stocks. The framework they used was highly structured, relying on eight key factors. These included transaction volumes, holding times, storage demand, supply, and locked tokens. They also factored in reserve ratios, discount rates, and the number of years needed for adoption to stabilize. For Bitcoin, Mitchnick and Athey assumed a steady rise in use, projecting $5.6 billion to $28.2 billion in daily transactions by 2030. If Bitcoin captured even part of gold’s value as a store of wealth, they estimated demand could reach $1.1 to $1.6 trillion. Their math valued the flagship crypto between $45,000 and $93,000. After adjusting for a 30% chance of success, the expected fair value dropped to $13,600–$28,100. For XRP, their expectations were even bigger. The model suggested that by 2030, XRP could handle $190 billion to $556 billion in daily payments across remittances, corporate transfers, and foreign exchange. If XRP captured 15–30% of crypto wealth storage, demand might climb to $1.6 to $3.2 trillion. With an 8.5% discount rate, the fair price came out between $6.37 and $32.91. Factoring in a 25% success chance, the expected value narrowed to $1.59–$8.23. Fast forward to today. Bitcoin trades at almost $117,000, far above the study’s fair value range. XRP, meanwhile, trades at around $3, higher than in 2018 but far from the $32 success case. The crypto market as a whole has grown into a $4 trillion industry. Bitcoin dominates with a $2.31 trillion valuation and $33 billion in daily volume. XRP holds a smaller share, valued at $180 billion with $4.14 billion in daily transactions. Many point to the U.S. SEC lawsuit against Ripple, which started in December 2020, as a major reason for XRP’s slower climb. The case, which just ended in 2025, dragged on for years and weighed heavily on adoption. Another factor is Ripple’s shifting focus. The original model assumed XRP would dominate global payments through Ripple’s On-Demand Liquidity (ODL) product. That has not fully happened, as Ripple expanded into other ventures, including stablecoins. Meanwhile, Bitcoin benefited from demand by exchange-traded funds (ETFs) and corporate treasuries.

The REX-Osprey hybrid spot XRP ETF launched on the Cboe BZH exchange on September 18, 2025, achieving a record-breaking $37.7 million debut-day trading volume. This marks a significant milestone in the crypto market, offering regulated direct exposure to XRP, attracting strong institutional interest and potential shifts in crypto investment dynamics. The ETF is a collaboration between REX Shares and Osprey Funds, with CF Benchmarks providing regulatory compliance. Listed on Cboe BZH exchange, the fund targets institutional investors, reflecting significant shifts in the cryptocurrency market landscape. The ETF's launch spurred immediate institutional engagement, pointing to a significant trust in XRP-based financial instruments. Notably, partnerships with Ripple, Franklin Templeton, and DBS signal burgeoning institutional adoption of XRP. This marks a pivotal moment for cryptocurrency inclusion in traditional investment portfolios. Financial impacts include a notable 3.32% XRP price rally post-launch, although technical factors soon led to a 3.79% correction. The regulatory landscape surrounding XRP continues to be a critical focus within its ecosystem. Legal clarity, particularly concerning potential derivative products like an ETF and options, is viewed as a significant factor influencing its future institutional adoption and market trajectory. Ongoing discussions and analysis emphasize the importance of resolving regulatory uncertainties as a potential catalyst for broader ecosystem development, with market participants closely monitoring developments in this area.

Significant institutional interest was demonstrated with the launch of an XRP-focused exchange-traded fund, which garnered notable capital inflows on its first day of trading. This event is seen as a major step in integrating the asset into traditional financial structures, potentially enhancing accessibility for regulated institutional investors. Such developments are generally interpreted as positive indicators for the asset's long-term mainstream acceptance and integration. Within the broader ecosystem, Ripple Labs recently celebrated its 13th anniversary, marking a significant milestone in the company's history. In conjunction with this, platform Uphold also commemorated the occasion and reaffirmed its commitment to supporting XRP-based services and assets. These celebrations highlight the ongoing development and maturation of the network infrastructure supporting the digital asset. The interplay between regulatory progress and institutional adoption remains central to the near-term narrative. While the regulatory environment requires careful monitoring, the recent successful introduction of an institutional investment vehicle signals growing confidence among certain market segments. Milestones celebrated within the ecosystem further underscore its established presence and the continuous efforts behind its development.