Briefing
On-chain data reveals a dramatic 90% reduction in XRP holdings on Coinbase over the past 90 days, indicating a profound shift in market supply dynamics. This substantial movement of assets off-exchange suggests either a strategic repositioning by large holders or a significant decrease in available sell-side liquidity, potentially amplifying price volatility as the market adjusts to this new supply profile. The core finding is that Coinbase’s XRP reserves plummeted from approximately 970 million to 99 million XRP, marking a major structural change in the asset’s exchange presence.
Context
The average person often wonders about the true availability of digital assets for trading and how large movements impact market stability. When a major exchange sees a significant shift in its holdings, it raises questions about market liquidity → Is there less XRP available to sell, or are large players simply moving their assets elsewhere? This data helps to understand the underlying supply structure for XRP and what it might mean for future market movements.
Analysis
The key metric analyzed here is Coinbase’s visible XRP holdings, which represent the amount of XRP held in the exchange’s cold storage wallets. This indicator measures the immediate supply of an asset available for trading on a major platform. When this metric goes down significantly, it means a large portion of the asset has moved off the exchange. Over the past 90 days, Coinbase’s XRP reserves saw a staggering 90% decline, falling from roughly 970 million XRP to about 99 million XRP.
This pattern suggests that a substantial amount of XRP has been transferred from Coinbase’s control to external addresses. While the exact reasons for these transfers are not definitively known, possibilities include institutional re-custody, over-the-counter (OTC) deals, internal wallet restructuring, or transfers to third-party custodians. This leads to the briefing’s conclusion that major XRP flows are underway, creating heightened uncertainty and potential for amplified price volatility due to the altered liquidity landscape.
Parameters
- Key Metric → Coinbase’s Visible XRP Holdings
- Observed Pattern → 90% decline in XRP reserves over 90 days
- Core Data Point → Reserves dropped from ~970 million XRP to ~99 million XRP
- Timeframe → Past 90 days, with data as of mid-September 2025
- Possible Causes → Institutional re-custody, OTC deals, internal restructuring, or third-party transfers
Outlook
This insight suggests that the XRP market is undergoing a structural change in its supply distribution. A reduced supply on a major exchange like Coinbase could lead to less immediate selling pressure, potentially supporting prices if demand remains constant or increases. However, it also introduces uncertainty, as the ultimate deployment of these moved assets is unknown. Readers should watch for any public statements from Coinbase or large custodial players, and monitor on-chain data for further movements to confirm whether this trend is a long-term repositioning or a temporary liquidity shuffle.
Verdict
The significant reduction in XRP supply on Coinbase signals a fundamental shift in market liquidity, poised to influence future price dynamics.
Signal Acquired from → Binance Square
