Binance $XRP reserves have fallen to their lowest monthly average since February 2024, with roughly 500 million $XRP leaving the exchange over the past year.
The decline comes despite $XRP posting a nearly 30% gain over the latest month. This highlights a divergence between the coin’s price performance and the amount of $XRP held on the world’s largest crypto exchange.
Binance $XRP Reserves Drop to 2.6 Billion
CryptoQuant author Darkfost said Binance’s monthly average $XRP reserves have declined from approximately 3.1 billion $XRP in November 2025 to around 2.6 billion $XRP currently.
That represents a reduction of about 500 million $XRP in less than a year. The decline is notable because $XRP has also experienced a substantial correction during the period. It fell from its $3.66 peak to $1.35, a drawdown of about 63%.
The data suggests that $XRP holders continued withdrawing tokens from Binance even as the market moved through a prolonged correction.
Darkfost also observed that Binance’s $XRP reserves have historically tended to rise during rebounds and decline again during subsequent retracements. Yet, the monthly-average nature of the metric creates a lag between price movements and changes in exchange balances.
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$XRP reserve decline on Binance
Investors May Be Moving $XRP Into Long-Term Storage
One potential explanation for declining reserves is accumulation by investors moving $XRP away from centralized exchanges and into private wallets.
A steady reduction in exchange balances suggests holders are less willing to keep their assets readily available for trading. Darkfost said the current reserve levels leave little doubt that at least some investors are accumulating $XRP.
However, falling exchange balances do not always mean people are accumulating $XRP for the long term. They may be moving $XRP between exchanges, institutions, or custodians for other reasons.
$XRP ETFs Also Driving Demand
Another factor identified by Darkfost is the launch of spot $XRP exchange-traded funds in November and December 2025. ETF issuers need to acquire $XRP to support the underlying exposure of their products.
This institutional demand may have led to more $XRP being bought from the market and moved off exchanges.
The timing is interesting because Binance’s $XRP reserves started falling around November 2025, when the spot $XRP ETFs were launched.
In other words, this suggests that ETF demand, along with investors accumulating $XRP, may have helped reduce the amount of $XRP held on exchanges.
Binance’s Own Transfers
Meanwhile, Darkfost also noted that changes in Binance’s $XRP reserves may be partly due to the exchange moving $XRP between its own wallets.
Binance may move $XRP around or adjust its reserves based on customer demand. Since the analysis looks at monthly averages rather than individual wallet transfers, these movements are unlikely to explain the entire long-term decline.
