Key Takeaways
- Binance’s monthly XRP reserves declined from 3.1 billion to 2.6 billion.
- The reserve average has returned to a level last seen in February 2024.
- Self-custody and ETF demand are possible, but unconfirmed, drivers.
Binance XRP Reserves Fall to 2.6 Billion
Binance’s monthly average XRP reserves have declined from about 3.1 billion in November 2025 to 2.6 billion, according to a Cryptoquant assessment by contributor Darkfost, shared on X on Sept. 1. The latest average matches a level last recorded around February 2024. The 500 million figure represents the net change across the period, not one identified withdrawal.
The contraction continued while XRP completed August with a gain of nearly 30%, according to the analysis, which placed the token near $1.35 on Sept. 1, about 63% below its cited high of $3.66. The accompanying chart shows Binance’s 30-day reserve average declining broadly alongside XRP’s retreat from its 2025 price peak. As of writing, the token has moved higher, trading at $1.45 after gaining 8% over 24 hours.
Cryptoquant summarized the finding in a Sept. 2 post on X, emphasizing the longer-term interpretation rather than an immediate price forecast, stating:
“This sends a relatively positive signal for XRP, although this dynamic is more relevant from a long-term perspective than in terms of having a direct impact on the price in the short term.”
Lower Reserves May Reflect Changing Holder Behavior
Declining exchange balances can occur when customers withdraw tokens, although reserve totals do not establish who controls the destination wallets or why assets moved. Earlier XRP withdrawal activity on Binance showed withdrawals exceeding deposits by transaction count for seven consecutive days in June. That indicator measured transaction frequency, while the latest reserve series measures Binance’s estimated XRP balance.
One explanation identified by the analysis is longer-term accumulation, with holders transferring XRP away from the exchange. Investors using self-custodial wallets control their private keys instead of leaving assets under an exchange’s custody. Such transfers would reduce reported exchange reserves, but a blockchain movement alone does not confirm an investor’s holding period or intent.
Reserve behavior around price movements adds another layer to the interpretation of the smoothed monthly series. The analysis observed that Binance’s XRP reserves tended to increase during rebounds before declining again during subsequent retracements. The monthly average introduces a lag, limiting comparisons between a specific day’s price movement and the reserve reading displayed for the same period.
Spot XRP ETFs Add Another Possible Source of Demand
Spot XRP exchange-traded funds (ETFs) could also have contributed to demand after their late-2025 launches, according to the analysis. The products included offerings from Canary Capital, Bitwise, Franklin Templeton, Grayscale, and 21Shares. As one example, Bitwise launched its XRP fund on NYSE Arca on Nov. 20 and stated that the product would hold spot XRP. Those launches fell within the period when Cryptoquant’s Binance reserve average began its sustained decline.
ETF-related buying cannot be equated directly with the 500 million XRP reduction measured on Binance. Fund sponsors and authorized participants may obtain tokens through multiple venues, market makers, custodians, or over-the-counter transactions. Exchange-linked XRP balances can also reflect customer deposits, custody arrangements, or other wallets controlled by the platform rather than a single source of market demand. A recent review of major XRP wallets showed how exchange holdings and escrow structures can complicate conclusions drawn from wallet balances alone.
Institutional XRP holdings nevertheless expanded as Binance’s reserve average moved lower during 2026. The Bitwise XRP ETF, for example, reached $502.7 million in net assets as of Aug. 27 and held nearly 364.8 million XRP. Its token holdings had increased by approximately 78 million XRP from June 30 through Aug. 27.
