Usman Salis
⬤ XRP saw a massive outflow from centralized exchanges over the past month, with 1.32 billion USD leaving the platforms. This shift shows a major reduction in on-exchange supply. CryptoQuant data reveals that Binance's XRP reserve dropped from nearly 7 billion USD in early November to about 5.7 billion USD by December 10, while the price stayed around 2.1 USD.
⬤ The data shows a steady drop in exchange reserves throughout November, with the sharpest decline happening around November 20, when reserves fell from roughly 6.2 billion USD to below 5.5 billion USD. During this time, XRP's price moved within a tight range of 1.95 to 2.15 USD. Despite the ongoing outflows, the price remained fairly stable.
⬤ Short-lived rebounds in XRP reserves appeared during brief price recoveries, but none reversed the overall decline in supply on Binance. The data suggests only a weak connection between reserve levels and price action, as XRP saw mild upward movements in early December even with reserves near multi-week lows. This points to a structural supply shift rather than a direct price-driven effect.
⬤ This matters because sustained reductions in exchange reserves can impact market liquidity and sentiment. The continued drop in available XRP on Binance shows a shift in how traders and investors are positioning the asset, which could affect volatility and price dynamics moving forward.
Usman Salis
