XRP Scarcity Index on Binance Falls to 20-Month Low as Tradable Supply Rises

An increase in the amount of XRP available for trading on global cryptocurrency exchange Binance could add to selling pressure in the coming months, according to an analysis.

BeInCrypto reported on September 30, citing CryptoQuant data, that Binance’s XRP scarcity index recently fell to -0.94. That marked the lowest level since January 2025.

The Binance scarcity index measures how scarce or abundant a cryptocurrency’s tradable supply on the exchange is relative to the past. A higher reading means less XRP is immediately available for trading.

The XRP scarcity index rose to 0.77 in July, its highest level in about two years, before plunging to -0.94 just a few months later.

BeInCrypto said Binance’s total XRP holdings have fallen by about 20% since November 2024. But the remaining supply appears to have shifted into a state where it can be used for trading rather than being stored in cold wallets. That suggests the change reflects not total holdings, but how existing supply is being used in the market.

Still, it remains unclear whether the increase in tradable supply will lead to actual selling. Higher liquidity on the exchange could increase future selling pressure, but the shift may also reflect routine liquidity provision by market makers.