Quick overview

Live XRP/USD Chart

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Coinbase’s XRP reserves dropped by 73% since the end of the second quarter, decreasing from roughly 970 million XRP spread across 52 cold wallets to a much smaller collection of redistributed addresses.

This steep decline is caused by significant custodial rebalancing, and combined withdrawals disrupt the on-exchange supply.

While prices have fallen from a high of $3.66, open interest (OI) in XRP futures has decreased by 30% over the past month, from $11 billion to $7.7 billion. A decline in open interest typically signals reduced speculative activity, which could mean leveraged traders are taking profits or losing confidence in the market. Similar patterns appeared in Q1, when spot prices fell over 50%, and XRP’s OI dropped from $8.5 billion to $3 billion, a sharp 65 percent decrease.

The current situation reflects that trend, suggesting traders may begin accumulating once OI establishes a new base range. An accumulation phase is often preceded by OI moderation

Coinbase’s XRP reserves have fallen significantly since their June consolidation across 52 cold wallets. Only 16 lower-tier wallets and a much smaller combined balance remain after many large addresses were emptied, fragmented, or redistributed, according to blockchain analysis. Coinbase held roughly 970 million XRP in June, based on on-chain data. Overall cold-storage holdings tied to Coinbase decreased by about 73% by the end of August. This decline occurred through transfers out of exchange custody, the emptying of large wallets, or subdividing holdings into smaller operational addresses.

The drop coincides with XRP trading near $3, a recurring resistance level this year. Although more data and a broader market context are needed to confirm a causal link, lower exchange balances can influence price movement and reduce available supply.

According to CryptoQuant, exchanges across all value bands saw large XRP inflows during its recent rise to $3.66. Whale cohorts holding 100,000 to 1 million XRP showed the most activity. Historically, such inflows have preceded major market peaks, as seen above the $3 level in 2018, near $1.90 in 2021, and around $0.90 in 2023, suggesting large investors may again be positioning to profit.