XRP Outflows from Crypto Exchanges: Investors Withdraw $3.8 Billion

Massive Outflows from Trading Platforms

XRP holdings on crypto exchanges have declined drastically over the past three months. According to data from analytics firm Glassnode, investors have withdrawn 2.05 billion Ripple coins worth approximately $3.8 billion from Binance, Coinbase, and other trading platforms since late September ^[2].

On September 29, crypto exchanges still held 3.499 billion XRP, but now hold only 1.446 billion XRP ^[2]. This represents a decline of 58 percent ^[2]. Currently, only 2.39 percent of all circulating Ripple coins are held on trading platforms ^[2] – the lowest level since spring 2018 ^[2].

Price Performance Under Pressure

The massive outflows coincide temporally with weak price performance. The XRP price has been trading below the $1.90 mark for a week and is currently hovering around the two-dollar mark ^[1][2]. After a strong rally and a summer high, an extended sideways phase followed ^[1].

Possible Causes of the Development

Traditionally, declining supply on trading platforms is considered a bullish signal, as this should theoretically lead to price gains with steady or rising demand ^[2]. However, there are clear limitations to this interpretation ^[2].

A significant factor is the increased emergence of treasury firms such as Evernorth along with the launch of ETF trading in November ^[2]. More and more XRP is being held outside traditional exchanges ^[2]. The index funds from Bitwise, Canary, and other providers already hold nearly 1 percent of the total Ripple coin supply after just a few weeks ^[2].

Furthermore, a large portion of the XRP supply is controlled by individual whales, including former and current members of Ripple's executive team ^[2]. Co-founder Chris Larsen reportedly owns 2.7 billion coins alone, which, together with his stake in Ripple Labs, elevated him to the ranks of the super-wealthy ^[2].

Industry-Wide Trend Visible

The development with XRP is not an isolated case. Bitcoin and Ethereum also show a similarly sustained trend: Since spring, the coin reserves of crypto exchanges have been melting away ^[2]. This suggests that more and more users are following the old cypherpunk principle: "Not your keys, not your coins" ^[2].

Long-Term Outlook

Despite the current sideways movement, there are initial signs that the cryptocurrency could achieve a positive turnaround in 2026 ^[2]. Various price forecasts are circulating for the coming years: While conservative analysts expect moderate growth, others are already talking about three-digit or even four-digit prices by 2030 ^[1]. The U.S. financial industry could play an important role in this development ^[2].