[Analysis] "Binance XRP Holdings Plummet…Signal of Rising Demand"

JOON HYOUNG LEE

Summary

Binance's XRP holdings have recently plummeted to about 2.7 billion, making it one of the lowest levels on record.
The phenomenon of investors withdrawing XRP from exchanges to personal wallets is often said to reflect an intention to hold long-term.
They analyzed that if institutional demand increases significantly alongside this decline, a strong market environment could be created.

*Trend of XRP holdings at global cryptocurrency exchange Binance. Photo=CryptoQuant*

The world's largest cryptocurrency exchange, Binance, has recently seen a sharp decline in its XRP holdings.

Darkpost (Darkfost), a CryptoQuant contributor, said on the 27th (local time) via CryptoQuant, "Since last month, Binance's XRP holdings have steadily decreased and have now fallen to around 2.7 billion," adding, "This is one of the lowest levels on record for the platform (Binance)." Darkpost stated, "Specifically, since the 6th of last month, about 300 million XRP have been withdrawn from Binance," and "the downward trend continues daily, which is generally interpreted as a positive sign."

Darkpost emphasized that the decrease in XRP holdings means "investors are withdrawing XRP from Binance and moving it to personal wallets." Darkpost analyzed, "When large assets are withdrawn from exchanges, it often reflects an intention to hold long-term," and "when assets leave exchanges, the amount immediately available for sale in the market decreases."

He added, "If this is combined with a substantial increase in institutional demand, a very strong environment could be formed," and "if this trend continues, XRP could enter a new market phase based on expanded institutional demand."

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