A significant supply shock has occurred in the XRP market, with over 1.35 billion tokens vanishing from centralized exchanges in recent weeks. This move comes amidst rising ETF speculation surrounding XRP and suggests a significant shift in how Ripple’s digital asset is being traded. New on-chain data shared by crypto analyst Diana highlights this trend. Her analysis shows that the XRP supply held on major exchanges has plummeted from approximately 3.95 billion tokens to just under 2.6 billion over the past 60 days. This signifies a drastic 45% decline, representing one of the steepest drops in exchange-held XRP we’ve seen in years. While the price of XRP hasn’t consistently mirrored this decline, the underlying trend points towards increased supply tightness. 3.95 billion tokens to roughly 2.6 billion XRP is a major shift. The market likely reflects an increase in XRP moving to cold storage, DeFi solutions, and long-term custody. Diana notes that this reduction in available sell-side liquidity could amplify price volatility as even small surges in demand can quickly influence the XRP price.