XRP in exchanges is disappearing rapidly, with reserves hitting a seven-year low.

Latest data shows that the XRP balance in exchanges has fallen to 1.6 billion tokens—more than half of the 3.76 billion tokens recorded last October. Over just a few months, where have billions of assets gone? This question is worth pondering.

Massive outflows often reflect a shift in market participants' sentiment. Some holders may be building long-term positions, transferring assets from exchanges to self-custody wallets for long-term holding. Another possibility is that some large institutions are quietly accumulating, laying the groundwork for future market actions. Regardless of the scenario, they point to the same direction—the truly sellable XRP in the market is rapidly decreasing.

From a supply and demand perspective, this shift is significant. When exchange liquidity tightens to this extent, any increase in buying pressure could push prices higher. Historically, whenever reserves hit multi-year lows, the market tends to experience noticeable volatility. The current question isn't whether there are buyers, but how many chips can be sold easily.

What does this major transfer of reserves really signify? Is it the beginning of a new upward trend, or is the market quietly gathering strength? These details are subtly shaping the possibilities of the future.