Binance’s XRP Holdings Hit Two-Year Low… “Set to Surge Vertically on Supply Shock”

▲ XRP (XRP)/ChatGPT-generated image

The amount of XRP held by Binance, the world’s largest cryptocurrency exchange, has plunged to its lowest level in two years, raising strong expectations of a potential price rebound driven by tightening supply.

According to a February 14 (local time) report by NewsBTC, recent on-chain data analysis shows that XRP deposits held by Binance have dropped to record lows. CryptoOnchain, an analyst at QuickTake, revealed that XRP reserves on exchanges have recently fallen to approximately 2.5 billion XRP. This marks the lowest level since early 2024 and suggests that the amount of XRP available for potential selling in the market is shrinking rapidly.

Binance’s XRP holdings peaked at around 3.2 billion XRP in November 2024 and have been on a steady decline since then. Over the past 15 months, investors have withdrawn roughly 700 million XRP from Binance. A decrease in exchange reserves is typically interpreted as a sign that investors are moving assets to private wallets or cold storage for long-term holding. Such movement plays a decisive role in reducing immediate selling pressure in the market.

Recently, XRP’s price has shown volatility amid broader market weakness, yet its internal supply structure appears to be strengthening. Last Friday, XRP rebounded დაახლოებით 5.7%, recovering part of the 7.1% loss recorded earlier in the week. Experts note that if buying demand flows in while liquid supply on exchanges remains low, a supply shock could occur, triggering a sharp price surge with significantly lower trading volume than in the past.

Some analysts interpret the declining supply as a signal of a full-scale accumulation phase. In particular, as institutional investors strengthen their long-term holding strategies, scarcity in the circulating market is intensifying. Even as major assets such as Bitcoin (BTC) fluctuate, XRP outflows from exchanges are accelerating, indicating preparation for a new phase of price formation.

As supply decreases and investor conviction deepens, market control is gradually shifting toward buyers. The shortage of sell-side liquidity within exchanges is expected to act as a catalyst for a price rebound when market demand recovers. With fundamental changes on the supply side being detected, investors are focusing not only on price movements but also on structural market shifts indicated by on-chain metrics, responding with more strategic approaches.

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