Binance Loses 500M XRP as Exchange Supply Keeps Falling

Binance's $XRP reserves have dropped to their lowest level in nearly two and a half years, raising fresh questions about where the tokens are going and what the outflow signals for the market.

500 Million XRP Gone in Under a Year

CryptoQuant analyst Darkfost says Binance's monthly average XRP reserves have declined from approximately 3.1 billion XRP in November 2025 to around 2.6 billion XRP currently, a reduction of about 500 million tokens in less than a year. That brings reserves to a level last recorded in February 2024.

The exchange's reserves have declined by approximately 500 million XRP even as the token's price dropped from a record $3.66 to around $1.35, leaving $XRP still trading approximately 63% below its all-time high despite a strong August recovery. Despite the steep price drop, the reduction in reserve holdings on Binance continued, suggesting that the outflow was not directly tied to price performance.

Accumulation, ETFs, or Something Else?

Darkfost says the decline could point to long-term XRP accumulation, with investors moving tokens to private wallets. Declining exchange reserves are often interpreted as a sign that investors are withdrawing assets into private wallets, and fewer tokens held on trading platforms can, in theory, reduce immediate selling pressure.

Another factor identified by Darkfost is the launch of spot XRP ETFs in November and December 2025. ETF issuers need to acquire XRP to support the underlying exposure of their products, and this institutional demand may have led to more XRP being bought from the market and moved off exchanges. The timing is notable because Binance's XRP reserves started falling around November 2025, when the spot XRP ETFs were launched.

For now, Darkfost considers the falling Binance reserves "a relatively positive signal", but says the trend matters more for the long term than immediate price action. Lower exchange balances can reduce immediately available supply, but they do not by themselves confirm buying or future price gains.

Darkfost has also highlighted that Binance's XRP reserves tend to rise when the token rebounds in price but decrease as corrections set in, a pattern that has been consistent in recent quarters. Whether the current drawdown marks a structural shift in holder behaviour or simply reflects the mechanics of a prolonged correction remains an open question.

Sources:
The Crypto Basic: 500 Million XRP Leave Binance as Exchange Reserves Fall to 2024 Levels
Yahoo Finance: XRP Price Faces Crucial September Test as Binance Reserves Fall
Finbold: Monster 551 Million XRP Leaves Binance in 21 Months