Large XRP withdrawals from cryptocurrency exchanges could become significant if whales continue removing tokens at an unusually high pace. Digital Asset Investor revisited the long-running Sh
Large XRP withdrawals from cryptocurrency exchanges could become significant if whales continue removing tokens at an unusually high pace.
Digital Asset Investor revisited the long-running Shane Ellis theory in a recent video, where he discussed large XRP purchases and exchange outflows as possible signs of a developing supply shock.
Digital Asset Investor opened the video by asking viewers to remember the Shane Ellis theory before discussing recent commentary about XRP whales removing tokens from exchanges.
The speaker focused on the difference between typical XRP withdrawals and much larger movements. He noted that investors normally see around 30 million to 40 million XRP leave exchanges and described that amount as significant. He then pointed to a transaction involving approximately 301 million XRP and called the movement much larger.
The video also referenced recent activity involving Uphold. The speaker said five cryptocurrency wallets appeared about 10 days earlier, and each wallet bought 100 million XRP on the same day.
The speaker connected the reported purchases with the possibility that large holders could deliberately reduce the amount of XRP available on exchanges.
“They’re going to cause on purpose the supply shock,” the speaker said in the video.
The Shane Ellis theory has circulated within the XRP community since around 2018. The theory focuses on institutional liquidity requirements and the structure of cryptocurrency exchange order books.
Supporters believe XRP could experience a rapid price increase if large financial institutions suddenly needed substantial amounts of the token for settlement. Rather than relying on gradual retail demand, institutions could potentially consume available sell orders across several price levels.
That buying pressure could reduce exchange liquidity and force buyers to pay increasingly higher prices for the remaining supply. Supporters refer to this potential situation as a supply shock.
The theory remains speculative. It does not prove that institutions will suddenly require a specific amount of XRP, nor does it establish that exchange withdrawals will automatically produce a particular price.
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Digital Asset Investor’s video places the reported purchases within that theoretical framework. The five wallets allegedly purchased 100 million XRP each, which would bring their combined purchases to 500 million XRP.
That figure significantly exceeds the 30 million to 40 million XRP withdrawal range that the speaker described as more typical. The reported 301 million XRP movement also stands out within the discussion because it represents a much larger withdrawal than the usual amounts cited in the video.
The commentary therefore centers on whether large holders are deliberately reducing exchange liquidity.
Recent XRP community commentary has also connected the theory with institutional developments involving Ripple, RLUSD, tokenization, and potential financial-market adoption. Those connections remain speculative and do not establish that XRP currently faces an imminent supply shock.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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