In a surprising turn of events, Coinbase’s holdings of XRP have plummeted nearly 90% over the past three months, as revealed by data from XRPWallets. At the beginning of the summer, Coinbase was known to possess approximately 970 million XRP spread across 52 cold wallets. Notably, ten of these wallets each contained 26.8 million XRP, while the remainder held a combined total of 16.8 million coins. This significant stockpile positioned Coinbase as one of the largest publicly visible holders of XRP in the crypto market.
However, by mid-September, the landscape had shifted dramatically. Only six cold wallets remain operational, each with about 16.5 million XRP, culminating in a total of roughly 99 million XRP—levels not observed in several years. This represents an astonishing 89.79% decrease from the figures reported in June. The sudden drop coincides with a series of consistent transfers taking place between Coinbase and unidentified wallets throughout the summer months.
One prominent transaction highlighted was the transfer of 16,508,780 XRP, valued at approximately $51.4 million, from an unknown wallet back to Coinbase on September 13. This particular event has fueled speculation among traders regarding the potential motives behind these transfers.
Traders are left questioning the destination of XRP as it leaves Coinbase. Some speculate that major institutions, such as BlackRock, could be acquiring XRP for their clients through the exchange, although concrete evidence remains elusive. On-chain data tracks balances departing the exchange but does not provide clarity on where the assets move post-transfer or their intended usage.
Despite the dramatic downturn in Coinbase’s XRP holdings, XRP retains its status as the third-largest cryptocurrency, trailing only Bitcoin and Ethereum, with a market capitalization hovering around $183 billion. This raises further questions about the future of Coinbase’s involvement in XRP management. The significant reduction in their custody of XRP suggests a strategic shift, potentially pointing to the coins being redirected into new custody solutions, private vaults, or alternative trading avenues. As the situation evolves, investors and analysts alike are closely monitoring the developments surrounding XRP’s circulating supply and the broader implications for the cryptocurrency market.
