XRP Exchange Reserves Plummet to Lowest Levels Since May Amid Cooling Market Activity

XRP's on-chain data is showing a decline in exchange reserves across major trading platforms. According to CryptoQuant, Upbit's XRP holdings have dropped to 6.43 billion XRP, their lowest level since May. Binance still holds roughly 200 million fewer XRP than it did at its March peak.

This trend extends beyond Upbit, with Binance reporting lower XRP balances than earlier this year. A sustained decline in exchange reserves typically indicates investors are moving tokens into private wallets or long-term custody rather than leaving them on exchanges, a trend often associated with lower near-term selling pressure.

Exchange reserves measure the amount of XRP available for immediate trading. As the supply of readily tradable XRP shrinks, any meaningful increase in demand can have a greater impact on price since buyers are competing for fewer available tokens.

CryptoQuant data also shows exchange activity cooling, with Binance deposits and withdrawals falling from about 650,000 transactions in June to roughly 350,000, a decline of nearly 46%.