• Binance XRP reserves dropped to their lowest level since early 2024
• Data shows roughly 700 million tokens left the exchange since November
• Traders are assessing whether reduced supply could affect volatility
Exchange balances for XRP are tightening, according to fresh on-chain data.
Binance XRP reserves have fallen to levels last seen in early 2024, a shift some traders link to changing liquidity conditions.
Binance XRP Reserves Slide Toward 2.5 Billion
Figures cited by CryptoQuant show Binance now holds about 2.5 billion XRP.
That total compares with roughly 3.2 billion recorded in November 2024. As a result, close to 700 million coins have moved away from exchange wallets over the period.
Market participants often interpret declining exchange inventories as a reduction in readily available supply.
Why Traders Track Exchange Balances Closely
When assets leave trading venues, they frequently move to private wallets.
Because self-custody is typically associated with longer holding periods, some investors read the trend as a sign of accumulation rather than preparation to sell.
However, balances alone do not confirm intent. Coins can always return to exchanges if sentiment shifts.
Context: Supply Metrics Often Shape Narratives
Reserve trends have played a central role in past crypto cycles.
During earlier rallies, falling balances encouraged expectations of tighter liquidity, while rising deposits sometimes preceded heavier selling.
For that reason, traders regularly combine wallet data with derivatives positioning and macro signals.
Market Impact
XRP traded near $1.50 during the latest discussions, reflecting a gain of roughly 4–5% on the day.
Still, analysts usually seek confirmation from volume and follow-through before declaring a structural change in trend.
Funding Rates Add Another Variable
Derivatives data shows XRP funding recently cooled compared with levels seen earlier in the quarter.
Because lower funding can reduce pressure from crowded long trades, some participants believe the market may have room to move in either direction.
Yet others warn that sudden volatility can rebuild leverage quickly.
The drop in Binance XRP reserves is feeding conversation about whether available supply is tightening.
Even so, traders caution that flows, regulation, and broader risk appetite will ultimately determine the next sustained move.
