Major cryptocurrency exchanges report drastic reductions in XRP holdings, signaling a market supply shift toward self-custody solutions and over-the-counter transactions.
Reserve balances across platforms including Upbit, Bitstamp, and Binance dropped substantially, with Upbit’s XRP holdings collapsing from previous levels of 60-65 billion tokens to approximately 18 billion. This supply movement away from trading venues suggests institutional investors or large holders are opting for long-term storage rather than immediate spot market liquidation.
Notably, XRP’s price maintained relative stability during this exodus, dipping only modestly to the $2.16 range. Concurrently, on-chain analysis reveals concentrated holdings in non-exchange wallets, including a single Binance-associated address controlling roughly 1.46 billion XRP – approximately 1.46% of the circulating supply.
The market impact hinges on whether withdrawn tokens return to exchanges, potentially triggering volatility, or remain permanently in private custody. Should the latter scenario dominate, the long-term price effect might be muted despite reduced immediate liquidity.
Trading professionals are closely tracking these reserve dynamics to adjust positions, viewing the decline as a critical indicator of evolving custody preferences and underlying market structure changes.