In Brief:
- Binance XRP reserves fell to 2.6 billion tokens, their lowest level since February 2024, after 500 million XRP withdrawals.
- The decline suggests long-term accumulation as investors move XRP into private wallets despite persistent market weakness.
- ETF demand and Binance’s internal wallet transfers offer additional explanations, although the chart cannot confirm where withdrawn tokens specifically moved.
Binance’s XRP reserves have dropped to 2.6 billion tokens, marking their lowest monthly average since February 2024. According to data presented by CryptoQuant analyst Darkfost, approximately 500 million XRP have departed Binance since November 2025 despite considerable market volatility.
The exchange previously held 3.1 billion XRP as the cryptocurrency market entered a bearish period during November 2025. Consequently, Binance’s average XRP holdings have declined by roughly 16.1% within less than one year.
Meanwhile, XRP trades near $1.35, representing a 63% drawdown from its previous market high of $3.66. Although XRP gained nearly 30% during the latest month, investors kept transferring substantial holdings away from Binance.
XRP Withdrawals Strengthen the Accumulation Argument
Darkfost’s chart applies a 30-day moving average, which reduces volatility from individual deposits, withdrawals, and internal exchange transfers. The smoothed metric reveals a persistent downward direction rather than temporary balance changes caused by isolated transactions.
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Falling reserves during price weakness suggest investors purchased XRP and transferred their holdings into private wallets. Consequently, sustained withdrawals could reduce the amount of XRP immediately available for sale through Binance’s trading platform.
ETF Demand and Internal Transfers Offer Explanations
Spot XRP exchange-traded funds may also have influenced the decline following their launches in November and December 2025. ETF issuers and liquidity providers may have purchased XRP from exchanges to support fund creation and satisfy investor demand.
Nevertheless, the available data does not establish whether tokens leaving Binance entered ETF custody accounts or privately controlled wallets. Additionally, Binance may have redistributed XRP among operational wallets while adjusting available liquidity to meet changing customer requirements.
Lower exchange balances could restrict immediate selling supply if stronger investor demand develops alongside persistent withdrawals. However, declining reserves cannot guarantee price appreciation because XRP still depends on trading activity and broader market sentiment.
A recovery toward 2.8 billion XRP would weaken the accumulation interpretation, particularly if reserves rose during another price decline. Ultimately, Binance’s shrinking reserves indicate that substantial XRP holdings have left the exchange despite persistent price weakness.
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