Binance Supply Not Sole Reason for XRP's Price Stagnation

XRP's price has stalled at around $1.52, making it the only major cryptocurrency to decline over the past week. In contrast, Bitcoin and Ethereum each gained about 2%, while Solana rose about 5%. On-chain data from Binance suggests that an increased supply of XRP on the exchange may be contributing to its sluggish performance.

The scarcity index for XRP on Binance dropped to -0.94 in late September, indicating a surplus of coins available for trading. However, despite this increase in tradable XRP, the total volume held by Binance has actually decreased by about 20% since November 2024.

Market makers and traders may be using more XRP as collateral for loans and leveraged positions, rather than selling it. The performance of smaller coins such as Chainlink, Sui, and Hedera may also be contributing to the rotation out of XRP.