XRP outflows top 320 million as Binance reserves drop

What happened

Transfers of at least 1 million XRP out of exchanges have climbed above 320 million in a day, according to CryptoQuant data. Analyst Xaif Crypto said the last spike of that size came in August, when XRP climbed more than 42%.

Xaif Crypto said Binance led the move, while Coinbase, Upbit, Bybit and Bitget also showed heavy outflows. Bitget recently suffered a $387 million breach. The analyst pointed to the August run, when the token went from about $1.05 to $1.50, as a comparison.

Analyst Amr Taha tracked the Binance side. The exchange's XRP reserve rose from about 2.60 billion to 2.70 billion tokens between September 13 and 27, then fell to 2.647 billion by September 30. Roughly 57 million XRP, or 2.1%, left in three days, more than half of the earlier build-up.

Taha said a lasting decline could leave fewer tokens available for spot trading and ease selling pressure. XRP traded close to $1.50 at the time of writing, up about 1% over 24 hours.

Why it matters

Coins that leave exchanges no longer sit where they can be sold at short notice. CoinCentral noted that exchange withdrawals do not confirm future buying or selling decisions, so the transfer data alone does not show intent.

CryptoOnChain looked at leverage, which the author said has fallen faster than price. Binance XRP open interest dropped 15.3% to $521.5 million on September 29, down from a six-month high of $616.1 million a week earlier.

Long liquidations averaged $3.72 million a day from September 24 to 29, about 2.6 times the six-month daily average. Funding rates also halved from 0.010 to 0.005.

CryptoOnChain said the setup points to conditions that have historically come before range-bound trading. One explanation the author offered is that traders cut leveraged longs before quarter-end instead of selling spot.

What the data shows

XRP rallied 16% over the last 14 days but is down more than 47% over 12 months. The token closed September with a third straight green month, adding around 8%.

Spot XRP exchange-traded funds added over $121 million in September, lifting cumulative net inflows to nearly $1.8 billion. CoinCentral put cumulative inflows near $1.79 billion.

Holder addresses climbed to 8.15 million, CoinCentral reported. XRP is the fifth-largest cryptocurrency by market cap.

Background

October has been mixed for XRP. Only five of the last 13 Octobers finished green, and the last one was a 16.5% gain in 2023, followed by a 16.7% loss in 2024 and a near 12% drop last year.

What is still unclear

• The reports do not say how much of the 320 million in outflows came from Binance specifically rather than the other venues named.
• It is also not established whether the withdrawn tokens will be held or later sold, since withdrawals do not confirm future buying or selling decisions.

Questions readers ask