Key Highlights
- Binance’s XRP reserve has dropped to a four-month low, showing that more investors are moving their XRP into private wallets.
- More XRP is leaving exchanges than entering them, with a net outflow of $42.67 million over the past 10 days.
- XRP network activity is rising despite the price decline, with daily active addresses increasing 36% from 27,205 on June 14 to 37,202 on June 28.
The amount of XRP held on cryptocurrency exchanges is falling as more investors move their tokens into private wallets, according to data from CryptoQuant.
According to CryptoQuant, Binance, one of the world’s largest crypto exchanges by trading volume, now holds its lowest XRP reserve in four months. The trend comes at a time when the crypto market is facing another price correction, with Bitcoin falling below $60K, but many XRP holders appear to be using the dip as a chance to buy more tokens.
More XRP leaves exchanges as investors hold longer
According to CryptoQuant, Binance’s XRP reserve has dropped to 2.64 billion XRP, which is about 4.2% of the token’s total circulating supply. This is a noticeable drop compared to previous months.
Back in March, Binance held around 2.8 billion XRP. The reserve later climbed to about 2.78 billion XRP in May before starting to fall again. The current amount is the lowest seen since February, when Binance’s reserve stood at 2.55 billion XRP.
This means that more XRP is leaving the exchange. When investors move tokens from exchanges to personal wallets, it often shows they are not planning to sell those coins right away. Instead, they may be choosing to keep them for a longer time. Private wallets also give users full control over their assets, unlike leaving them on an exchange.
Exchange outflows continue across the crypto market
The trend is not limited to Binance. Data from Coinglass shows that XRP has also been leaving exchanges across the wider crypto market.
Over the past 10 days, exchanges recorded $822 million worth of XRP deposits, but $864.6 million worth of XRP was withdrawn. This resulted in a net outflow of $42.67 million.
The same pattern continued over the last 24 hours. During that period, investors withdrew $69.84 million worth of XRP from exchanges, while only $64 million flowed into trading platforms. This left a daily net outflow of about $5.78 million.
XRP drops while investors keep buying the dip
What makes this trend more interesting is that it is happening while XRP’s price is under pressure. According to data from CoinMarketCap, the token has dropped by about 1.03% over the last 24 hours. This adds up to about an 8% drop in a week and over 22% in a month.
Still, many investors appear to be buying during the dip instead of moving away from the asset. By taking their XRP off exchanges, they reduce the number of coins that are immediately available for trading.
Network activity picks up as more wallets become active
The XRP network is also becoming more active. Data from Santiment shows that the number of daily active XRP addresses increased from 27,205 on June 14 to 37,202 on June 28. That is a 36% increase in just two weeks.
Daily active addresses count the number of unique wallets that send or receive XRP each day. When this number increases, it usually means that more people are using the network.
Technical indicator points to possible market shift
Meanwhile, market analyst Ali Martinez noted in a recent post on X that the TD Sequential indicator recently printed a buy signal on XRP’s daily chart.
This technical indicator is used by many traders to spot points where selling pressure may be slowing down and where prices could begin to recover. While it does not guarantee that the price will rise, it is one of several signals traders watch when studying the market.
Also Read: Bitcoin Wealth Shift is Opening New Doors for Private Banks: Glassnode
