XRP drops to sixth largest cryptocurrency as Binance XRP supply hits 2.61 billion

Over 2.6 billion XRP tokens are now available for sale on Binance, according to data from CryptoQuant. This sharp increase coincides with a period of heightened selling pressure and declining prices for the cryptocurrency.

Sharp increase in XRP supply on exchanges

XRP, developed by Ripple Labs as a digital payment protocol, has seen a significant rise in tokens available for trade on Binance, one of the world’s largest cryptocurrency exchanges. As of August 8, the XRP balance on Binance reached 2.61 billion coins.

CryptoQuant reported that this surge highlights an ongoing trend where more XRP tokens are being deposited onto exchanges than withdrawn. This pattern typically signals that investors are preparing to sell, driving up supply and potentially placing additional downward pressure on price.

Recent exchange activity pointed to a situation where more XRP tokens were moved onto trading platforms, suggesting a wave of holders looking to liquidate as market sentiment remained negative.

The increase in exchange supply has occurred alongside a period of uncertainty in the broader cryptocurrency market, further undermining investor confidence in XRP’s short-term outlook.

Mini dictionary: CryptoQuant, a blockchain analytics platform that provides real-time metrics and insights about cryptocurrency exchange reserves, on-chain activity, and investor sentiment.

Market cap drop pushes XRP out of top 4

XRP’s market capitalization sank to approximately $64 billion after a steep fall in price over the past week. This decline has pushed XRP out of the top four cryptocurrencies ranked by market cap.

Binance Coin (BNB) has now overtaken XRP in the rankings, and the token currently sits behind both Tether (USDT) and USD Coin (USDC)—the two largest stablecoins by market value. As a result, XRP is now the sixth largest digital asset in the market.

CryptocurrencyPrevious RankCurrent RankMarket CapXRP46$64 billionBNB54N/AUSDT33N/AUSDC65N/A

Despite the negative sentiment, XRP experienced a brief upward movement, momentarily rebounding to around $1.04. However, persistent volatility and increased selling indicate ongoing investor caution.

XRP’s rapid drop in price and the shift in rankings reflect both market-wide volatility and waning investor confidence in the asset’s immediate prospects.

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