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Binance XRP reserves fall as 200 million tokens move off exchange
Over the last ten days, Binance’s visible XRP holdings have declined materially as roughly 200 million XRP were withdrawn from the exchange and shifted into private custody. The platform’s exchange supply ratio for XRP fell from 0.027 to 0.025, a gradual slide that points to steady outflows rather than a single-day redistribution.
What the reserve decline indicates
Exchange reserve metrics measure how much of a token’s circulating supply sits on trading platforms versus in private wallets. When reserves rise, it often signals increased selling intent because assets are being moved to exchanges; conversely, falling reserves typically reflect withdrawals to self-custody, reducing instantly available sell-side liquidity.
Market data show XRP trading near $1.43, down roughly 0.5% on the day, with approximately $2.2 billion in 24-hour spot volume. These outflows have pushed centralized-exchange balances toward multi-year lows, reinforcing an ongoing trend among holders to remove assets from custodial platforms.
User-driven withdrawals, not internal reallocation
Analysis suggests these movements are driven by users rather than Binance reallocating assets between internal addresses. Binance’s published custody addresses make it easier for analysts to distinguish operational transfers from organic withdrawals, and the pattern here reads as holder-led migration to private wallets.
Data for 2025 indicate the current withdrawal wave has already outpaced the year’s net accumulation, underlining a structural shift in custody preferences. Historically, persistent exchange outflows after price pullbacks can signal renewed buyer interest at lower levels, although reduced exchange supply alone does not guarantee immediate price appreciation.
Implications for liquidity and market structure
Lower balances on exchanges mean less immediate liquidity available for spot selling. If demand returns, that thinner on-exchange supply could contribute to sharper price moves. Market participants and crypto investors are watching closely to see whether this trend will translate into upward price momentum or remain a longer-term change in holding behavior.
In short, the 200 million XRP exit from Binance highlights the growing emphasis on self-custody among XRP holders and the continuing evolution of token liquidity dynamics on centralized exchanges. Analysts will monitor reserves and on-chain flows for signals of shifting market structure and potential catalysts for price action.
Source: crypto
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