- Coinbase’s XRP reserves plunge 57% amid massive internal token shifts.
- Whale Alert spots $53 million XRP transfer sparking market speculation.
- Analysts debate reserve restructuring as XRP demand for payments grows.
According to new on-chain data, Coinbase’s XRP holdings have dropped sharply in recent months. Since the beginning of June, the exchange’s reserves have been reduced by 57.4 percent, and the number dropped to almost one billion XRP in 52 cold wallets, which is now reduced to approximately half this volume.
Currently, there are ten wallets containing approximately 26.8 million XRP and 42 wallets containing approximately 16.8 million XRP. In a recent move, 16.69 million XRP valued at about $54.83 million were moved out of Coinbase Cold Wallet 155 to Coinbase Cold Wallet 10 in what was confirmed to be an internal move.
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Transfers fuel debate over purpose and destination
The destination of these large transfers remains unclear. Analysts think they might be investing in subwallets associated with Bitstamp, BitGo, and Ripple’s On-Demand Liquidity network. Others cite the potential rearrangement of Coinbase’s reserves to enhance access to assets and address the changing market environment.
Although the outflows are massive, one does not notice panic and chaos in the manner in which the transfers are being conducted. The quantities and the timing are such that the steps were well calculated, and the emphasis was on strategic positioning but not on abrupt liquidation.
Whale Alert tracks another major XRP shift
According to Whale Alert, a transaction involving 16,698,207 XRP valued at about $53.16 million was recorded on Monday. The movement initially sparked rumours that a prominent external owner was transferring funds to Coinbase as a possible market action.
Additional blockchain information showed that the transfer was an internal exchange of XRP between Cold Wallet 197 and Cold Wallet 6. The two wallets belong to the reserves of Coinbase, which usually have comparable balances of about 16.5 million XRP each.
Market usage driving reserve changes
Growing demand for XRP in payments and cross-border settlements is another factor driving the decline in Coinbase’s reserves. As more tokens circulate through other exchanges and custodial services, Coinbase’s influence over large XRP flows may continue to diminish.
The sharp decline in the XRP reserve of Coinbase is making headlines throughout the market, not just because of the magnitude of the transactions but also due to their possible consequences.
Whether driven by liquidity needs or broader adoption trends, the exchange’s reduced holdings could signal shifting dynamics in XRP’s usage and market control.
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