The pace of withdrawals of the XRP cryptocurrency from Binance, the world’s largest digital asset exchange, has increased in a context of growing institutional interest.
This happens especially following the launch of the first XRP spot exchange-traded funds (ETFs) on the United States stock market two weeks ago.
Reserves on the platform have fallen to one of their lowest levels, standing at approximately 2.7 billion XRP, which is equivalent to about $5.94 billion.
Since October 6, nearly 300 million XRP—valued at $660 million at the current price—have been withdrawn from Binance.
Although the exchange’s internal movements could justify a portion of this outflow, trend consistency points to broader market behavior, indicates an analysis shared by on-chain data provider, CryptoQuant, done by the trader known as Darkfost.
The following chart illustrates the relationship between the dollar price of XRP and the total amount of XRP reserves held on the Binance exchange, from August to the end of November.
The significant decline in reserves on a centralized exchange like Binance is often interpreted as a positive indicator of demand. Suggests that investors are withdrawing their XRP for safekeeping in private walletswhich denotes a long-term maintenance intention.
Implications of dynamics in XRP
A smaller amount of XRP available for immediate sale on the exchange, added to the institutional demand that expands with the new ETFslaunched by managers such as Canary Capital, Franklin Templeton, Bitwise and Grayscale, as reported by CriptoNoticias, creates a potentially bullish market configuration.
Precisely, the cryptocurrency in the market has reflected this dynamic with a 10% rally in the last week, moving from $1.82 to $2.20.
The combination—growing institutional demand with increasingly scarce available supply on Binance—generates a supply shock that the market interprets as a sign that XRP It could be leaving behind its lateralization stage to enter a new period of price increases.