XRP Nears All-Time High: Just 11 Exchanges Hold Over 23% of Supply

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XRP continues to capture investor attention as it approaches its historical price peak, drawing focus not only for its market performance but also for the concentration of its supply. With a circulating supply of 57.49 billion tokens, recent data reveals that a significant portion of XRP remains in the hands of a few major entities—particularly centralized exchanges and large institutional wallets. This growing scrutiny highlights critical dynamics in the cryptocurrency ecosystem: liquidity access, market influence, and decentralization.

Concentration in Top Wallets and Exchanges

At present, the top ten XRP wallets control 41.04% of the total circulating supply. Among these, eight are managed by Ripple Labs—the company behind XRP—demonstrating continued central oversight despite years of network development. The ninth-largest wallet belongs to Uphold, a San Francisco-based digital asset platform, which holds 1.85 billion XRP. Rounding out the top ten is South Korea’s Bithumb exchange, with 1.44 billion XRP in reserve.

👉 Discover how major exchange holdings can impact XRP price movements and market stability.

Beyond the top wallets, 11 centralized exchanges collectively hold over 23.09% of XRP’s total supply, according to on-chain analytics from Cryptoquant and xrpscan.com. These platforms serve as key liquidity hubs but also represent points of potential centralization risk. Here's a breakdown of exchange reserves:

This level of exchange concentration underscores their pivotal role in trading volume and price discovery. However, it also raises questions about market manipulation risks, especially during periods of high volatility or low liquidity.

Broader Distribution Trends: XRP vs. Stellar (XLM)

While XRP exhibits notable centralization, its distribution is still more balanced compared to its forked counterpart, Stellar (XLM).

The top ten wallets in the Stellar network hold 58.62% of the total supply—significantly higher than XRP’s 41.04%. Even more strikingly, the top 100 XLM addresses collectively control 96.08% of all circulating tokens, indicating an extreme level of concentration.

In contrast, the top 50 XRP addresses manage 63.83% of the supply, while the top 100 control 71.82% of the 57 billion+ circulating tokens. This suggests that while Ripple maintains influence through reserved wallets, there is broader dispersion across retail and institutional investors compared to Stellar.

Liquidity Pools and DeFi Participation

In addition to exchange holdings, approximately 14.98 million XRP tokens are locked in liquidity pools, primarily on decentralized exchanges (DEXs) or cross-chain bridges. While this figure pales in comparison to centralized exchange reserves, it reflects growing interest in integrating XRP into decentralized finance (DeFi) ecosystems.

However, due to regulatory uncertainty surrounding XRP’s classification as a security in certain jurisdictions—particularly following the SEC lawsuit against Ripple—its adoption in DeFi remains limited compared to other major cryptocurrencies like Ethereum or Solana.

Still, platforms enabling wrapped XRP (wXRP) or cross-chain bridges are beginning to emerge, offering new pathways for yield farming and automated market making.

👉 Learn how liquidity distribution affects long-term investment potential in digital assets like XRP.

Market Implications of Supply Concentration

The high concentration of XRP among a small number of wallets and exchanges has several implications:

1. Price Volatility Risk

Large sell-offs from any top holder—especially exchanges during market downturns—could trigger sharp price drops. Exchange outflows often signal impending selling pressure.

2. Market Manipulation Concerns

With fewer actors controlling large portions of supply, coordinated trading activities could distort price action, particularly in lower-volume markets.

3. Regulatory Scrutiny

Regulators may view concentrated ownership as a systemic risk, especially if exchanges or issuers exert undue influence over price or availability.

4. Investor Confidence

Transparency in wallet ownership and regular reporting from exchanges help build trust. Platforms like Cryptoquant provide valuable insights into real-time movements, enabling informed decision-making.

How This Affects Investors in 2025

As we progress through 2025, investors are increasingly analyzing token distribution metrics alongside traditional technical and fundamental indicators. For XRP holders, understanding where supply resides—and who controls it—is essential for assessing both opportunity and risk.

Those monitoring on-chain data can gain early signals from unusual movements, such as large transfers from Ripple-controlled wallets to exchanges, which might precede market activity.

Moreover, any shift toward greater decentralization—such as increased DEX usage or reduced exchange balances—could be interpreted as a bullish sign for long-term health and resilience.

👉 Explore real-time tools that track exchange reserves and whale movements for smarter investing decisions.

Frequently Asked Questions (FAQ)

Q: Why do so many XRP tokens remain in Ripple-controlled wallets?
A: Ripple holds a significant reserve of XRP to support strategic initiatives, including partnerships, payments infrastructure development, and market stability efforts. These funds are gradually released under predefined escrow mechanisms.

Q: Does high exchange concentration mean XRP is unsafe to invest in?
A: Not necessarily. While concentration introduces risks, it also ensures deep liquidity and ease of trading. Diversifying your portfolio and staying informed about on-chain activity can mitigate potential downsides.

Q: How does XRP’s distribution compare to Bitcoin?
A: Bitcoin is far more decentralized, with no single entity controlling large portions of supply. The top 100 BTC addresses hold around 15–20% of the total supply, compared to over 70% for XRP’s top 100.

Q: Can exchange-held XRP be sold at any time?
A: Yes—exchanges may move or sell XRP based on user activity, market conditions, or business decisions. Sudden outflows often correlate with increased selling pressure.

Q: Is the decline in exchange reserves bullish for XRP?
A: Generally yes. When XRP moves from exchanges to private wallets (cold storage), it reduces available supply on the market, potentially supporting upward price pressure if demand remains steady.

Q: What role does Uphold play in the XRP ecosystem?
A: Uphold is one of the few U.S.-based platforms that has maintained consistent support for XRP trading and custody, contributing to its accessibility for American investors despite regulatory challenges.

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This evolving landscape emphasizes the importance of transparency, data literacy, and strategic awareness for modern crypto investors navigating assets like XRP in 2025 and beyond.