Binance XRP Supply Hits Highest Level Since 2025, But Why Is Price Stuck at $1.50?

The supply of XRP on Binance has reached its highest level since January 2025, according to on-chain data from CryptoQuant. The XRP Scarcity Index for the exchange dropped to -0.94 on September 30, sparking concerns that the increased supply may be contributing to XRP's inability to climb past $1.50. XRP is currently trading at approximately $1.52, making it the only major cryptocurrency to decline over the past week, down by about 0.2%. In contrast, Bitcoin and Ethereum each gained about 2%, while Solana rose about 5%.

The scarcity index measures how much XRP is available for trading on Binance compared to historical levels. A high score indicates that XRP is scarce on the exchange, while a low score indicates a surplus. However, even with the increased supply, Binance holds less XRP overall, with a 20% decrease since November 2024. This drop suggests that while more XRP has moved from cold storage into trading wallets, making it easier to trade, the total volume of XRP on the exchange has decreased.

The rotation of investor interest into smaller coins, such as Chainlink, Sui, and Hedera, may be driving both the increase in available supply and XRP's sluggish performance. Traders have rotated into these smaller coins, which have seen significant gains over the past week. This trend may be weighing on XRP's price, making it more difficult for it to climb past $1.50.

The listing of Evernorth on Nasdaq on October 8 may provide some clarity on the situation. Evernorth plans to list with approximately 473 million XRP, valued at about $719 million. However, this listing may not initially add new buying pressure, as the 473 million XRP represents less than 1% of XRP's total market value.