Evernorth, the largest publicly traded XRP asset management firm, has highlighted a potential supply shock in the XRP market due to significant exchange outflows. In February, over 7 billion XRP exited exchanges, marking the largest monthly outflow since November 2025. This trend suggests a tightening supply as tokens are moved to cold wallets, reducing immediate trading availability and potentially increasing price sensitivity.
The market is witnessing a shift towards long-term holding, with large holders accumulating an average of 11 million XRP daily. Additionally, the number of medium-sized wallet addresses has reached a record 1.1 million, indicating broader market absorption beyond just large investors. As XRP's price consolidates between $1.38 and $1.42, analysts suggest a potential breakout could lead to increased volatility, especially with Coinbase's upcoming TAS feature for XRP futures set to launch on May 1, 2026, enhancing institutional trading capabilities.
XRP Supply Tightening Sparks Volatility Concerns Amid Exchange Outflows
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