XRP liquidity is experiencing considerable upheaval as recent on-chain data uncovers one of the largest synchronized withdrawals across major exchanges. Nearly all of the top trading platforms reported significant outflows, indicating potential shifts in user behavior and institutional strategies. Analysts have observed a sharp decline in the total amount of XRP held on exchanges, indicating either substantial withdrawals, a shift towards self-custody, or internal asset rebalancing.
As of now, total XRP held on exchanges has decreased to approximately 15.86 billion XRP, marking a reduction of 6.5 billion XRP since February, which equates to a 29% decline. Notably, Upbit faced an outflow of 6.22 billion XRP, while Binance saw 2.56 billion XRP exit its platform. Bithumb recorded 1.77 billion XRP in withdrawals. Other significant exchanges, such as Uphold, eToro, Bybit, and Bitbank, each reported roughly 50% declines in their XRP balances, reinforcing a trend where users are increasingly opting to move their assets off exchanges, potentially into personal wallets or cold storage.
In contrast, a few platforms experienced notable inflows. Evernorth reported a 13.36% increase, Coincheck welcomed an influx of 550 million XRP, and OKX showed a staggering 10,107% spike, likely attributed to address reclassification. However, the situation is starkly different for many other exchanges; Coinbase has lost an astounding 99.97% of its XRP holdings since February, while KuCoin, Paribu, and SwissBorg recorded nearly total exits from the asset.
This widespread reduction in exchange balances signifies a potential reshuffling event that might have lasting impacts on XRP liquidity and overall market dynamics. Adding to this liquidity shift is the anticipated launch of the 21Shares U.S. spot XRP ETF, set to begin trading under the ticker TOXR on Monday. This ETF will track the CME CF XRP-Dollar Reference Rate, providing investors with exposure to XRP’s spot price without requiring direct ownership of the cryptocurrency.
The recent weeks have seen significant activity in the U.S. market regarding XRP ETFs, including recent launches from Grayscale and Franklin Templeton. Initial trading shows a strong demand for these products, with the GXRP and XRPZ ETFs attracting $67.36 million and $62.59 million in flows on their first trading days, respectively.
From a technical perspective, XRP’s price has risen by 0.75% in the last 24 hours, currently trading at $2.19, which reflects a 7-day gain of 13.61% and a market capitalization of $132 billion. Analysts from EGRAG CRYPTO indicate that closing above $2.60 could suggest bullish momentum, while a breakthrough beyond $3.40 would demonstrate robust upward trends. Conversely, a decline below the 21 EMA might signal a bearish reversal, highlighting key levels that traders should watch for signs of enduring market strength.
In summary, the recent outflows of XRP from exchanges, coupled with the introduction of the 21Shares ETF, point to a transformative period in liquidity and investor behavior. These large-scale withdrawals, inflows, and critical technical benchmarks indicate both risks and opportunities ahead. Traders are advised to carefully monitor exchange balances, ETF movements, and critical technical levels as XRP navigates this crucial phase in its market evolution.
