XRP Scarcity on Binance Reaches Highest Level Since 2022 – Here is What It Means

Even though $XRP has extended its October selloff into November 2026, on-chain data analysis reveals a strong demand from investors.

The XRX Binance Scarcity Index, a tool that measures liquid supply constraints on the largest cryptocurrency exchange by daily traded volume, has surged to 2.1, its highest level since 2022.

$XRP Binance Scarcity Index. Source: CryptoQuant

After remaining negative throughout September and October 2026, the metric recorded a sharp multi-day surge into significantly positive territory, marking one of its strongest upward movements in four years.

As a result, the $XRP Ledger: Exchange Reserves on Binance, 30-day Simple Moving Average (SMA), has crashed to a new multi-year low. At the time of writing, the $XRP reserves on Binance (SMA 30) hovered at around 2,602,104,093 tokens, down from 3,293,564,370 tokens 12 months ago, as per data from CryptoQuant.

$XRP reserve on Binance (SMA 30). Source: CryptoQuant

Historically, such a significant decline in tradeable tokens on Binance has preceded a renewed strong uptrend.

$XRP price performance and prediction

Although $XRP supply on Binance has been in free fall, the token’s price has capitulated by more than 18% over the past month, trading at approximately $1.23 at the time of reporting. Consequently, the altcoin had a market capitalization of about $78.1 billion.

Token’s performance on Thursday. Source: CoinMarketCap

At the time of publication, $XRP’s 24-hour average trading volume had plunged by more than 19% to $2.43 billion.

Despite the recent selloff, crypto analyst Ali Martinez expects a potential bull rally towards $2.1 in the near future, especially if the resistance level at $1.6 is broken.

The rising scarcity of $XRP on Binance is well positioned to catalyze bullish sentiment.