Data from various blockchain trackers indicates a remarkable reduction in XRP holdings by Coinbase, catching many in the crypto community off guard. Current figures reveal that the popular U.S.-based exchange has decreased its XRP stash from over 780 million to just under 200 million, marking a significant 69% reduction since the second quarter of 2025. Notably, in just the past month, the exchange has witnessed a 57% decline in its XRP holdings, prompting speculation about potential institutional outflows and market manipulation.
As a result of this drastic cut, Coinbase has seen a shift in its ranking among XRP holders, dropping from the fifth largest to barely making it into the top ten. In discussions on social media platform X, one user known as Stern Drew has fueled theories suggesting that the reduction in Coinbase’s XRP holdings is part of a coordinated effort to suppress the cryptocurrency’s price.
In an extensive thread, Drew alleged that around 40% of the outflows were funneled through over-the-counter (OTC) desks linked to New York institutions. He noted an interesting correlation: the timing of these XRP sales coincided with dips in the crypto’s price throughout August. Furthermore, he claimed that a significant portion of the XRP was sold during periods of low liquidity, with sales being dispersed across various wallets to obscure their magnitude. The thread also speculated that some of the transacted XRP may have found its way into custodial wallets associated with BlackRock, enhancing suspicions regarding institutional involvement.
However, pro-XRP lawyer Bill Morgan has pushed back against the narrative of manipulation. He emphasized that the behavior exhibited by Coinbase and XRP is consistent with the cryptocurrency’s historical patterns. Morgan pointed out that XRP has previously demonstrated similar price movements, especially during a substantial period when Coinbase suspended trading of the asset starting in January 2021, with no discernible influence on the market until it resumed trading in July 2023.
Morgan questioned the validity of claims regarding Coinbase’s manipulation, suggesting that XRP’s price fluctuations are more reflective of the broader cryptocurrency market rather than any intentional suppression by the exchange. He labeled the manipulation theory as overly speculative, considering the long-standing trends in XRP’s price behavior.
Currently, XRP has been trading within a stable range of $2.8 to $2.9 over the past week. Although it dipped below the $3 support level as August ended, the cryptocurrency has managed to maintain itself above $2.8, providing some cushion against steeper declines. Traders are closely monitoring the $3.10 resistance level, recognizing that any decisive breakthrough could tilt momentum back in favor of bulls in the market.
At present, XRP is trading at approximately $2.82, as investor focus remains sharply tuned to market dynamics amidst the ongoing discourse regarding Coinbase’s recent actions.
