TLDR
- The XRP reserve on Binance has dropped to 2.7 billion tokens, reaching one of its lowest levels ever recorded.
- More than 300 million XRP worth approximately $651 million have been withdrawn from Binance since October 6.
- CryptoQuant identified a steady accumulation trend based on recent on-chain activity involving XRP.
- Analyst Darkfost explained that most of the withdrawals appear to be long-term holdings rather than simple wallet redistribution.
- The decline in XRP reserve aligns with the launch of multiple XRP ETFs including those from Canary Capital and Grayscale.
XRP reserve on Binance has sharply declined since early October, indicating ongoing accumulation activity, CryptoQuant reported on Thursday. Over 300 million XRP worth $651 million have exited Binance wallets, reducing the XRP reserve to just 2.7 billion tokens.
XRP Withdrawals Intensify as Accumulation Trend Builds
The on-chain data shows that XRP outflows from Binance began increasing around October 6.
Since then, the XRP reserve on Binance has dropped to one of its lowest historical levels.
CryptoQuant referenced a detailed analysis by the author Darkfost to support this trend.
He stated, “This isn’t random movement, the accumulation is too consistent to ignore at this scale.” He clarified that while some transfers may involve redistribution, most appear to be actual withdrawals from Binance.
This pattern supports the idea that users are moving XRP to private storage. That move reduces circulating supply on exchanges and lowers short-term sell pressure on the asset. Consequently, the XRP reserve on Binance reflects stronger holder conviction over time.
ETFs Align With Falling XRP Reserve
The decline in XRP reserve coincides with the launch of U.S.-based XRP ETFs. Canary Capital’s XRP ETF launched on November 13, followed by Bitwise, Grayscale, and Franklin Templeton.
Darkfost emphasized the correlation between these launches and XRP outflows from Binance. He remarked, “This transforms XRP from a standard asset to an institutional-grade product with multiple investment channels.” He suggested the alignment with ETF launches amplifies the relevance of the declining XRP reserve.
These ETFs offer traditional exposure to XRP for institutional investors. With reduced exchange supply, the XRP reserve on Binance shows the asset’s shift toward long-term holding. This may prepare the asset for broader financial market inclusion.
Analysts Project Price Outcomes If Accumulation Persists
As accumulation grows, analysts are assessing price implications tied to XRP’s reduced availability. Chad Steingraber introduced a valuation model based on projected capital inflows and asset absorption rates.
His model considers an annual $33.6 billion inflow and price sensitivity to demand. Depending on the accumulation pace, XRP could range between $11.25 and $225. These projections follow the ongoing plunge in the XRP reserve on Binance.
CryptoQuant confirmed that over 300 million XRP tokens have already been withdrawn since October. XRP reserve on Binance currently stands at just 2.7 billion tokens.
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Source: https://blockonomi.com/xrp-reserve-on-binance-drops-sharply-as-accumulation-trend-grows/