XRP’s trading volume has dropped sharply to its lowest levels in years, according to recent analysis, even as the token continues to hold near the key $1 mark amid significant supply changes.
XRP’s trading volume has dropped sharply to its lowest levels in years, according to recent analysis, even as the token continues to hold near the key $1 mark amid significant supply changes.
Crypto analyst Dark Defender, known for market insights on the XRP ecosystem, released a 12-year volume chart highlighting major trends. The data indicates that XRP volume surged during boom years such as 2017 and 2021 but has since retreated, bringing activity close to its quietest period since the token’s early years.
From 2014 to 2017, XRP saw relatively modest trading activity. Volume spiked dramatically in 2017 as the broader crypto market experienced a rally. A similar surge occurred in 2021, establishing new peaks for XRP’s trading volume.
Recent data for 2026 shows a steady decline, with current volumes matching the subdued levels seen nearly a decade ago. This drop-off comes even as XRP’s price remains stable around $1.
Most market observers interpret the quiet as a lack of interest, but new factors are limiting how much XRP remains available for regular trading.
Dark Defender argued that the reduction in trading activity is not solely due to fading interest, but also reflects changes in XRP’s circulating supply and market dynamics.
One of the main drivers behind the lower trading volume appears to be a sharp decline in XRP held on exchanges. Dark Defender reported that tracked exchange reserves fell from 4 billion XRP to 1.6 billion XRP—settling at an eight-year low. This reduction significantly diminishes the amount of token readily available for active trading.
Additionally, data shows that 992 million XRP are allocated to US spot ETFs. According to Dark Defender, these holdings are effectively removed from regular market circulation, lowering overall liquidity.
A further development highlighted by the analyst is the launch of a $280 million RLUSD vault which now accepts XRP as loan collateral. The facility is projected to grow, potentially encompassing up to 5 billion XRP within six months.
These shifts suggest that a considerable share of XRP is being parked for investment vehicles and collateralized lending, leaving less supply for day-to-day exchange on open markets.
MetricPrevious ValueCurrent ValueXRP exchange reserves4 billion XRP1.6 billion XRPXRP in US ETFs—992 million XRPXRP collateral in RLUSD vault—Potential 5 billion XRP (projected)Dark Defender believes these factors are fundamentally changing the nature of trading activity for the token.
Dark Defender also pointed to the expanding role of tokenized real-world assets (RWAs) on the XRP Ledger. The analyst noted that $4.3 billion in tokenized assets are now live on the platform, marking a 59-fold increase since January 2025. This growth signals the rising importance of asset tokenization in the ecosystem.
The XRP Ledger is an open-source blockchain developed by Ripple for fast, low-cost global payments. Its support for tokenizing real-world assets lets financial institutions and investors create digital representations of traditional assets directly on the blockchain.
Mini dictionary: Tokenization of real-world assets (RWA): The process of creating blockchain-based digital tokens that represent ownership of physical or traditional financial assets, allowing for increased liquidity and programmable use cases.
According to Dark Defender, this trend accelerates the shift in XRP’s market structure toward long-term holding and specific utility, rather than frequent trading. “Volume dies when coins stop changing hands,” the analyst wrote, suggesting that today’s low volumes should be read in the context of these broader changes.
XRP could increasingly serve as collateral for borrowing, rather than being constantly bought and sold.
As more XRP is locked away for collateral or investment vehicles, the analyst believes volume deserves close attention going forward, especially as the token remains around the psychologically important $1 threshold.
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