Key Highlights
- XRP exchange reserves increased by 120 million tokens as smaller withdrawals gained share, creating a larger pool of tokens that could be sold.
- Binance’s 90-day average XRP whale outflow fell from $3.5 billion in February 2025 to $49.7 million, the lowest level since October 2021.
- Binance’s XRP supply share recovered from 2.49 to 2.66 as daily XRP Ledger transactions rose by approximately 14.78% to 2.49 million.
XRP Exchange Reserves Rise as Large-Holder Activity Slows
Exchange reserves of XRP, the token associated with Ripple, rose by 120 million tokens as withdrawals by smaller holders gained a greater share of exchange activity. The change indicates a slowdown in transfers involving large XRP holders rather than clear evidence of active retail-led accumulation. As more tokens remain available on exchanges, the potential pool for selling expands, although the effect on XRP’s price will ultimately depend on exchange outflows and how markets react to those movements.
CryptoQuant’s analysis points to a pronounced weakening in whale activity. Binance’s 90-day average XRP whale outflow has fallen to $49.7 million, its lowest level since October 2021. That compares with a peak of $3.5 billion in February 2025, when XRP was trading near $3.30. The steep decline suggests that large holders are transferring fewer XRP off Binance, potentially reflecting reduced accumulation interest at current prices.
Five-Year Low Signals Reduced Whale Buying
Whale outflows measure the movement of large quantities of XRP from exchanges, where tokens may be held for possible selling or moved into other custody arrangements. Their decline does not automatically mean that additional losses are inevitable. If XRP becomes sufficiently attractive again, renewed whale buying could emerge and signal a change in the market’s direction. Without that renewed demand, however, sustaining previous recoveries may be difficult as exchange reserves continue to grow.
The data therefore present a mixed signal. Lighter whale transfers reduce one source of immediate selling pressure from large holders, but rising reserves leave more XRP exposed on trading venues. The balance between those factors, together with the market’s pricing response to future exchange outflows, will be more informative than either measure in isolation.
Binance XRP Supply Share Recovers
Binance’s share of XRP supply has also moved higher. The reading fell to 2.49 in October before rebounding to 2.66, indicating that the exchange currently holds a larger proportion of available XRP. That expands the pool of tokens traders could access, increasing the potential for selling pressure if broader demand remains weak.
Activity on the XRP Ledger has moved in the opposite direction. Daily transaction counts increased by approximately 14.78% to roughly 2.49 million, following relatively strong activity in late August and early September. Higher transaction volume shows increased network use, but it does not reveal whether the transactions represent purchases, sales, transfers or other movements. Direction can only be assessed more confidently if elevated activity is accompanied by sustained price recoveries.
Why This Matters
For XRP, the distinction between exchange supply, whale outflows and network transactions is central to assessing market conditions. Rising reserves and a recovering Binance supply share increase the amount of XRP potentially available for sale, while subdued whale outflows suggest that large holders are not moving significant amounts off the exchange. Transaction growth adds evidence of greater network participation, but it does not identify the direction of market demand.
Several indicators will need to converge before a stronger conclusion can be drawn. A sustained recovery in XRP’s price alongside high transaction activity and renewed whale demand would point to improving participation. Continued growth in exchange supply, particularly if accompanied by a weaker XRP price, could give sellers greater influence and add downward pressure. Exchange outflows and the market’s response to them remain central to determining which path develops.
Frequently Asked Questions
How low are Binance’s XRP whale outflows?
Binance’s 90-day average XRP whale outflow is $49.7 million, the lowest since October 2021. It has fallen sharply from the $3.5 billion peak recorded in February 2025.
Does rising XRP exchange supply guarantee a price decline?
No. A larger exchange balance increases the pool of XRP available for sale, but actual price movement depends on demand, exchange outflows and how the market responds. XRP’s price could recover if buying interest strengthens.
Do higher XRP Ledger transaction counts confirm buying activity?
No. The approximately 14.78% increase to 2.49 million daily transactions demonstrates greater network activity but does not show whether participants are buying or selling. Sustained price gains alongside high activity would provide stronger evidence of improved demand.
