What to Know:
- Binance’s XRP reserve dropped to 2.61 billion tokens, marking its lowest level since February and reducing available exchange supply significantly.
- CryptoQuant reported that reserve balances stabilized after months of withdrawals, while XRP price remained weak despite declining exchange-held token availability.
- Lower Binance reserves may reduce selling pressure over time, although stronger demand remains essential before XRP can sustain meaningful gains.
Binance’s XRP reserve has fallen to its lowest level in five months, signaling a notable change in the token’s exchange supply. According to a CryptoQuant analyst, the reserve dropped to approximately 2.61 billion XRP at the beginning of July before stabilizing near that level, leaving fewer coins available on the world’s largest cryptocurrency exchange.
The decline comes even as XRP traded between $1.06 and $1.11 during the same period. While lower exchange reserves often reduce the amount of XRP available for selling, price performance remained under pressure as broader market conditions outweighed the supply shift.
CryptoQuant’s data also reveals that Binance’s XRP holdings have followed a gradual downward trend over the past year. Exchange balances exceeded 3 billion XRP during the second half of 2025 before repeated withdrawals pushed reserves steadily lower.
Binance’s XRP Reserve Reaches Lowest Level Since February
According to the CryptoQuant analyst, Binance’s XRP reserve reached its lowest reading since February after falling to around 2.61 billion XRP. The analyst added that reserve levels have remained close to that mark because the exchange has not recorded meaningful inflows.
The accompanying chart shows that the decline developed over several months instead of resulting from a single large withdrawal. Binance’s reserve repeatedly moved lower following brief recoveries, creating a consistent downward trend.
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Source::CryptoQuant
Compared with reserve levels recorded last year, Binance now holds roughly 400 million fewer XRP. This represents one of the exchange’s smallest XRP balances in recent months. Moreover, the data suggests that more investors have transferred XRP away from Binance than deposited it. As a result, fewer tokens remain readily available for immediate selling on the exchange.
Reduced Supply Has Yet to Lift XRP
Despite the shrinking reserve, XRP’s price has not followed the same direction. According to the CryptoQuant analyst, the token declined alongside exchange reserves, demonstrating that lower supply alone does not guarantee higher prices. Instead, market liquidity, trading activity, and investor sentiment have remained the primary drivers of price performance. These factors have offset the impact of declining exchange balances.
Additionally, lower reserves generally reduce potential selling pressure because fewer coins remain available on exchanges. However, stronger buying demand is still required before reduced supply can support a sustained recovery.
CryptoQuant’s latest data also shows that Binance’s reserve has stabilized near 2.61 billion XRP rather than rebounding. That pattern may indicate that investors are holding XRP in private wallets instead of returning tokens to the exchange.
Conclusion
Binance’s XRP reserve has dropped to its lowest level in five months, highlighting a sustained decline in exchange-held supply. Although XRP has not mirrored that trend with higher prices, the reduced reserve may become a supportive market factor if buying demand strengthens and exchange balances remain constrained.
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