XRP holders are pulling coins off exchanges at a pace not seen since 2021

$XRP holders are moving their tokens off centralized exchanges at the fastest clip in more than five years, with on-chain data pointing to a broad retreat from sell-side activity even as the price lingers just above the $1 mark.

Withdrawals Hit a Multi-Year Peak

On July 31, the seven-day $XRP withdrawal transaction share on Binance surged to 55.6%, the highest level since February 2021, while the same metric across all centralized exchanges reached 54%, according to CryptoQuant data. Deposit transaction shares fell to matching five-year lows of 44.3% on Binance and 45.95% across the broader market.

At the same time, exchange inflows fell to their lowest level ever recorded. Crypto analyst Darkfost observed that average monthly $XRP inflows to exchanges now stand at around 3.6 million XRP, the lowest monthly inflow figure on record. Combined with the surge in withdrawals, the on-chain metrics point toward holders unwilling to sell in large numbers, a condition Darkfost described as seller exhaustion.

Leverage and Reserves Also Pulling Back

XRP futures open interest on Binance has fallen to roughly 397 million XRP, its lowest level in over three months, as the token trades around $1.09. A decline in open interest alongside price weakness often reflects deleveraging, as traders reduce or close existing positions.

Binance $XRP reserves have dropped roughly 650 million coins, or about 20%, since November 2024, falling from 2.8 billion in May to around 2.6 billion more recently. Such withdrawals can signal investors moving tokens into self-custody, though they do not automatically translate into upward price pressure without corresponding demand from fresh buyers.

The broader picture suggests a market in consolidation rather than active distribution. Holders appear reluctant to bring coins to market, leveraged bets are being unwound, and exchange supply is thinning. Whether that sets the stage for a recovery or simply reflects a lack of conviction on all sides remains an open question.

Sources:
XRP exchange withdrawals hit 5-year high: Here's what it means, CryptoNews.net
XRP exchange withdrawals hit multi-year high as selling pressure fades, AMBCrypto
XRP Open Interest on Binance Hits a Three-Month Low, Yahoo Finance