On January 18, 2025, XRP reserves held on Binance were valued at around $10.16 billion. By mid-January 2026, that number had dropped to roughly $5.55 billion, a decline of about 45%, according to data tracked by CryptoQuant.
Key Takeaways
- •XRP exchange reserves on Binance have fallen by about 45% over the past year, signaling reduced sell-side supply.
- •Tokens are leaving exchanges at a steady pace, pointing to long-term holding rather than short-term speculation.
- •More than 25,000 wallets recently moved into higher balance tiers, showing broad accumulation.
- •Price remains in consolidation, but thinner liquidity could amplify the next major move.
This is not a sudden one-off event. The steady pace of outflows suggests a long-term shift in holder behavior rather than a reaction to short-term price swings or news headlines.
What Lower Exchange Supply Really Means
When fewer tokens sit on exchanges, selling pressure becomes structurally weaker. That does not guarantee higher prices, but it does change how the market reacts when demand shows up. With thinner order books, even moderate buying can have a larger impact than it would have when exchange balances were higher.
In practical terms, XRP now needs less new demand to move than it did a year ago. At the same time, reduced liquidity can also increase short-term volatility, meaning price moves can become sharper in both directions once momentum returns.
Accumulation Spreads Across Wallet Sizes
On-chain data shows that XRP accumulation is not limited to one type of holder. In a recent 48-hour period, more than 25,000 wallets moved into higher balance tiers, a pattern often seen during accumulation phases rather than distribution.
Smaller holders appear to be adding gradually, mid-sized wallets are increasing exposure, and larger holders are continuing to build positions. This broad-based behavior is important, as it suggests confidence is not concentrated in a narrow group.
Network Growth Adds Another Layer of Support
The total number of XRP wallets has now surpassed 7.5 million, reaching that milestone earlier than many expected in 2026. A growing wallet base generally leads to more distributed ownership, which can reduce the impact of sudden sell-offs by a small number of large players.
Combined with falling exchange reserves, this points to a supply that is increasingly locked away in private wallets rather than positioned for immediate selling.
Price Action Lags Behind On-Chain Signals
Despite these structural changes, XRP’s price has remained relatively range-bound. Momentum indicators reflect hesitation rather than exhaustion. RSI readings sit in the low-to-mid 40s, while MACD remains near neutral after a recent bearish crossover.
This kind of divergence, where on-chain behavior strengthens while price stalls, often signals a market waiting for a catalyst. Whether that catalyst comes from broader crypto sentiment, regulation, or macro conditions remains unclear.
Overall, XRP appears to be in a transition phase. Supply is tightening, ownership is spreading, and holders are positioning quietly while price moves sideways. Historically, this combination has often preceded stronger directional moves, even if the timing is difficult to predict.