Speculation in cryptocurrency markets often gathers speed long before there is clear agreement on fundamentals. XRP has recently become the focus of that speculation after a dramatic new warning suggested that the token’s tradable supply could tighten sharply.
Traders and investors are now weighing whether the combination of institutional demand and shifting custody patterns could create the conditions for a rapid price surge.
Levi’s Warning
Levi of Crypto Crusaders sparked the debate with a widely shared video on X, declaring that “XRP is getting ready to vanish from exchanges overnight.” His message, while striking, has done more than predict a higher price. It has drawn attention to the structural factors that could trigger a genuine supply shock and forced market participants to examine how much XRP is truly available for active trading.
$10 #XRP? SUPPLY SHOCK ALERT!
pic.twitter.com/61uthPukSI
— Levi | Crypto Crusaders (@LeviRietveld) September 28, 2025
Exchange Balances Show Uneven Trends
Blockchain data offers the best measure of XRP’s liquid supply, and the numbers reveal a complex picture. Exchange-hosted balances have fluctuated throughout 2025. Some periods show significant withdrawals that reduce immediately tradable coins, while other snapshots—especially in early September—record notable inflows back to major venues.
These alternating patterns point to temporary tightening rather than a persistent drain. Only a sustained, multi-week decline in exchange reserves would signal the kind of structural shortage that could magnify price moves.
Institutional Products Reduce Exchange Float
Institutional demand presents the most credible path to a real supply squeeze. Physically backed exchange-traded products, including WisdomTree’s XRP ETP, require issuers to hold large quantities of the token in regulated cold storage.
Each transfer from an exchange into custody for these products removes coins from active order books. As these funds grow their assets under management, the available trading supply diminishes, quietly increasing the impact of any surge in buying pressure.
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Derivatives Add Leverage to Market Moves
Regulated derivatives are amplifying the potential effect. The Chicago Mercantile Exchange already lists XRP futures and is preparing to introduce options, giving professional investors new ways to gain exposure.
Large futures or options positions can drive rapid spot market reactions as traders hedge or arbitrage, meaning that a rise in open interest on CME contracts could be an early sign that institutional money is positioning for stronger price action.
Separating Hype from Hard Data
Some viral posts reference a $51 billion single‑day trading volume from a past rally as evidence of how quickly XRP could climb. In reality, that figure reflects turnover across the entire cryptocurrency market, not XRP alone.
While XRP enjoys healthy daily volumes, its asset‑specific data remain well below such headline numbers. Using market‑wide statistics to project an overnight price leap exaggerates the case and underscores the importance of relying on verifiable metrics.
Outlook for Investors
Levi’s alert underscores a scenario that is both plausible and measurable: if institutional products, custodians, and derivatives activity continue to draw XRP away from exchanges while demand rises, prices could move sharply higher.
Yet public data still show intervals of replenished exchange balances and no confirmed, long‑term depletion across major platforms. For now, the smart approach is vigilance. Watching exchange reserves, institutional custody growth, and derivatives activity will provide clearer signals than viral headlines as to whether the supply shock Levi predicts is truly approaching.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in‑depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.