What to Know: XRP’s Exchange Supply Ratio on Binance fell to a five-month low, reflecting a sustained decline in the exchange’s XRP holdings relative to circulation. Binance’s shrinking XRP r
A major XRP on-chain indicator has fallen to its lowest level in about five months on Binance, pointing to a notable shift in the exchange’s XRP holdings. According to CryptoQuant analyst Arab Chain, the XRP Exchange Supply Ratio has dropped to approximately 0.02605 while XRP trades near $1.14, indicating that Binance now holds a smaller share of the cryptocurrency’s circulating supply.
The Exchange Supply Ratio measures the amount of XRP stored on Binance relative to the asset’s total circulating supply. Market participants often monitor this metric because it helps gauge how much XRP remains readily available for trading on the exchange. Although the indicator does not determine price direction by itself, sustained changes can provide insight into potential shifts in selling pressure.
CryptoQuant data shows the ratio remained above 0.028 during March before beginning a gradual decline across the following months. The downtrend accelerated in June and eventually pushed the metric to its lowest reading since February.
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According to Arab Chain, the falling Exchange Supply Ratio suggests that XRP has steadily moved away from Binance instead of remaining available for immediate trading. Those tokens may have been transferred to private wallets, institutional custody providers, or other storage destinations outside the exchange.
The chart also reveals that Binance’s XRP holdings declined despite notable price swings. XRP traded near $1.50 earlier in the period before retreating and later recovering to around $1.14. Even as prices fluctuated, the Exchange Supply Ratio maintained its downward trend.
Source: CryptoQuant
That pattern differs from periods when investors move assets onto exchanges in preparation for selling. Instead, Binance has held a progressively smaller portion of XRP’s circulating supply, reducing the amount immediately available for spot transactions.
Additionally, the steepest decline occurred during late June, when the ratio dropped rapidly despite XRP trading within a relatively stable range. That movement indicates that withdrawals persisted regardless of short-term price fluctuations.
Arab Chain explained that a lower Exchange Supply Ratio means fewer XRP tokens remain on Binance relative to the circulating supply. If that trend persists, the reduced exchange inventory could ease selling pressure because fewer coins are readily available for immediate liquidation.
However, the analyst noted that the metric should not be viewed as a standalone bullish signal. XRP’s price remains influenced by investor demand, trading volume, liquidity conditions, broader cryptocurrency sentiment, and the movement of funds between exchanges and private wallets.
Should Binance balances keep declining while buying demand strengthens, tighter exchange supply could provide additional support for price stability. Conversely, rising XRP deposits back to Binance would increase the amount available for sale and could signal renewed selling activity.
The latest decline in Binance’s XRP Exchange Supply Ratio highlights a meaningful change in the exchange’s share of the token’s circulating supply. While lower exchange balances can reduce potential selling pressure, price performance will still depend on broader market demand, liquidity, and whether the current withdrawal trend remains intact.
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The post Alert: Major XRP Exchange Metric Hits 5 Month Low on Binance – What it Means for Price appeared first on 36Crypto.
