Binance’s Dwindling XRP Reserves May Propel Ripple’s XRP Skyward
Binance’s diminishing XRP reserves have sparked significant interest among traders, especially as the U.S. prepares for the launch of spot XRP ETFs. Recent on-chain analytics reveal that Binance’s XRP holdings plummeted to approximately 2.785 billion tokens on November 12, 2025, a slight drop from 2.795 billion the previous day. This decline represents the lowest level seen in nearly a year.
Key Data on Binance’s XRP Reserves
Over the past few months, Binance’s XRP supply has consistently decreased. In October, the exchange’s balance fell to around 2.74 billion tokens, indicating a concerning trend of tightening liquidity.
- November 12, 2025: 2.785 billion XRP held by Binance
- October 2025: 2.74 billion XRP, lowest in almost a year
- Decrease since early October: 3.4% drop in total XRP reserves across exchanges
Institutional Demand and ETF Inflows
The reduction in Binance’s XRP supply coincides with a surge in institutional demand. Analysts from JPMorgan project that between $4 billion and $8 billion could flow into new XRP spot ETFs within their first year. This substantial influx of capital could significantly exceed XRP’s typical trading volumes.
As a result, many sales of XRP have moved off exchanges, further diminishing available supply. This scenario leads observers to suggest a potential “perfect storm” for XRP, characterized by limited exchange stockpiling and increasing institutional appetite.
Implications for XRP Pricing
While analysts advise caution regarding market timing, current conditions indicate a possible supply crunch that could drive up XRP prices. As Binance’s reserves dwindle, the entry of new buyers may encounter less market resistance than usual.
In practical terms, a few large purchase orders might significantly impact prices. Analysts point to historical instances in which the reduction in circulating supplies of other assets, like gold, has led to price surges.
Future Outlook for XRP
With numerous banking partnerships and robust on-chain features, XRP’s market fundamentals remain strong. However, the key focus is on the interplay between constrained supply and increasing demand. Binance’s strategic movement of millions of XRP off its exchange highlights this dynamic.
If the anticipated XRP ETFs launch as scheduled, the resultant buying frenzy could interact swiftly with the shrinking Binance float. In such a scenario, normal purchasing activity could lead to considerable price increases, reinforcing bullish sentiment around XRP.
As experts note, the dwindling reserves on Binance have emerged as a critical factor influencing XRP’s market trajectory, inviting renewed optimism from investors.
