Binance XRP Inflows Plummet as Institutional Holders Take Charge

XRP has seen a decline in exchange deposits over the past month, which is being interpreted as a sign of improved market sentiment. This trend has been observed on Binance, where XRP inflows have dropped to their lowest level in two months. In contrast, withdrawals from the platform have surged, with 361,000 transactions in the past two months.

This reduction in exchange deposits suggests that investors are holding onto their XRP for longer periods of time, rather than selling it immediately. According to CryptoQuant researchers, this is a sign of institutional holders looking to recover losses since January while lowering risks. The asset has also seen heavy institutional purchases in recent weeks, contributing to its weekly gains.

While some analysts point out that XRP remains an asset capable of significant price swings, with last year's run topping USDT as the third-largest asset by market capitalization, others note that this trend is not necessarily a sign of rotation out of Bitcoin. Instead, it appears to be a mid-cycle fund rotation to altcoins.