Ripple’s native cryptocurrency XRP is entering what analysts call a potential “supply shock,” as exchange reserves on Coinbase have dropped dramatically. On-chain data shows that Coinbase’s XRP holdings fell from around 970 million tokens across 52 wallets in June 2025 to just 99 million XRP spread across 6 wallets by mid-September. This sharp 89.79% decline highlights reduced availability on one of the largest U.S. exchanges.
The restructuring from dozens of wallets to just a handful suggests Coinbase has significantly altered its management of XRP reserves. At the same time, institutional interest in XRP has been rising. Eight companies have already adopted XRP-based treasury strategies, including Trident Digital Tech Holdings, VivoPower International, and Wedbush International, each holding more than $100 million in Ripple’s cryptocurrency.
Further fueling demand, 11 spot XRP ETF applications are currently awaiting SEC approval, with major firms like Fidelity, VanEck, Grayscale, Bitwise, Franklin Templeton, and ARK Invest leading the charge. The Rex-Osprey XRP ETF is set to go live under the ’40 Act structure this week, which could intensify institutional demand.
Beyond ETFs and treasury adoption, XRP continues to expand its role in cross-border payments, tokenized asset settlement, stablecoin bridging, and DeFi applications. This growing real-world utility strengthens the bullish case for Ripple’s token.
Amid these developments, XRP has regained the $3.00 support level, with daily trading volumes climbing over 12% to $5.7 billion. Open interest also remains firm at $8.57 billion, signaling strong trader participation.
Crypto analyst Dark Defender, citing Elliott Wave patterns, sees XRP breaking through initial weekly resistance. His projections point to $4.39 and $5.85 as the next major upside targets. On the downside, XRP holds support at $3.01 and $2.85. With supply dwindling and demand rising, analysts argue a powerful rally toward $5 could be on the horizon.
