XRP Volume Sinks to Decade Low Amid Structural Shift
XRP's trading volume has plummeted to levels not seen in nearly a decade, despite holding steady around the psychologically important $1 mark. This decline is not due to a loss of investor interest but rather a fundamental restructuring of how XRP is held and used, according to crypto analyst Dark Defender.
Volume spiked dramatically during the 2017 and 2021 crypto booms, establishing peaks that have yet to be approached since. By 2026, however, daily trading has retreated to the subdued levels seen between 2014 and 2017. 'Volume dies when coins stop changing hands,' Dark Defender wrote.
The most significant factor behind the decline appears to be a sharp reduction in XRP available on exchanges. Tracked exchange reserves have fallen from approximately 4 billion XRP to about 1.6 billion XRP, an eight-year low. This reduction removes a substantial portion of the token from active circulation, directly constraining the supply available for regular trading.
Beyond exchange outflows, roughly 992 million XRP are now allocated to US spot ETFs, effectively removing those tokens from standard market circulation. Additionally, a $280 million RLUSD vault that accepts XRP as loan collateral has been launched, with Dark Defender projecting it could expand to encompass up to 5 billion XRP within six months.
The shift toward collateralized lending and investment vehicles represents a meaningful change in XRP's market structure. Rather than being constantly bought and sold, an increasing share of the token is being parked in long-term holding vehicles or pledged against loans. This creates a scenario where low volume signals reduced circulating supply, not necessarily diminished demand.
Tokenization activity on the XRP Ledger has accelerated in parallel. Dark Defender noted that $4.3 billion in tokenized real-world assets are now live on the platform, marking a 59-fold increase since January 2025.