XRP Whales Are Withdrawing Their Coins from Exchanges: What Does This Mean?

CryptoQuant data showed that whale-sized transfers, in particular, were increasingly carrying more weight in exchange outflows. On Binance, whale outflows accounted for 84.2% of total outflows on September 29th. This rate was equal to the level seen on August 21st, while the share of individual investors fell to 15%.

A similar trend emerged when looking at centralized cryptocurrency exchanges in general. The share of whales in outflows increased from 78% on August 21st to 82% as of September 29th, while the share of individual investors decreased from 21% to 17% during the same period. Thus, the difference between whales and individual investors increased from 57 points to 65 points.

$XRP’s exchange reserves also supported this outflow trend. Binance’s $XRP reserves decreased from 2.70 billion $XRP to 2.63 billion $XRP between September 26 and October 4. During this period, approximately 73.1 million $XRP, or about 2.7% of the total reserves, left the exchange’s holdings.

At South Korea-based Upbit, $XRP reserves decreased from 6.44 billion $XRP to 6.41 billion $XRP between September 11 and October 5. This represents a reduction of approximately 31.6 million $XRP in Upbit’s reserves.

When the declines on both exchanges are considered together, it appears that a total of approximately 104.7 million $XRP was withdrawn from Binance and Upbit’s reserves.

CryptoQuant noted that the combination of increased whale-led outflows and a decline in exchange reserves could indicate a decrease in the supply of $XRP available for sale on exchanges.

*This is not investment advice.