XRP Reserve on Binance Drops to 2.74B XRP as Smart Money Accumulates Quietly

The XRP reserve on Binance is depleting drastically on Binance, suggesting accumulation by long-term holders.

While some panicked during the latest market uncertainty, smart money investors are taking in massive amounts of XRP. Data from CryptoQuant shows the XRP reserve on leading crypto exchange Binance is drying up as the platform records outflows far outweighing inflows.

Users Take XRP Off Exchanges

Specifically, the data shows that the Binance XRP reserve dropped to 2.74 billion tokens, one of the lowest levels, declining slightly below its May lows. The last time Binance held this amount of XRP was in mid-2024, an over one-year bottom.

Its reserve dropped from 6.12 billion XRP last Thursday to 6.08 billion XRP yesterday, a decline of over 40 million worth $104.8 million.

Meanwhile, The Crypto Basic has also identified declines in Coinbase‘s XRP reserve. Late in September, a report highlighted that Coinbase’s XRP holdings in its cold wallets had shrunk by 96.59% to just 32 million XRP, held across two wallets.

XRP Reserve Drop Creates Scarcity

Such depletion occurs when users shift their XRP tokens from centralized platforms to self- or third-party custody wallets for long-term holding. This accumulation move suggests confidence in XRPs long-term price trajectory.

Furthermore, it creates scarcity on exchanges, which is a bullish price catalyst. When fewer XRP tokens are available on exchanges, immediate selling pressure drops, making the asset scarcer. The simple economics creates a supply shock, potentially driving XRP to higher prices.

Elsewhere, XRP Whales Dump 140M XRP

Meanwhile, Santiment data shows that whales are taking profit following the recent XRP rebound. Wallets holding between 1 million and 10 million XRP recently dumped 140 million XRP, bringing their holding to 6.41 billion XRP.

Whales Sell 140M XRP

The drop coincides with an XRP rally from around $2.36 six days ago to its current market price of $2.63, marking an 11.4% growth. Prominent analyst Ali Martinez suggested that they might be locking in gains from the recent rally, reflecting pessimism about further bullish moves.

Nonetheless, XRP has developed strongly in the past few days, and analysts are tipping the asset to continue its recent price exploit. The recent 388.78 million XRP accumulation from Evernorth further strengthens bullish sentiment around XRP.