XRP Exchange Holdings Climb to 11.81 Billion Tokens, Near One-Year Peak for Potential Selling Supply
Summary
- Exchange-held XRP has climbed to about 11.81 billion tokens, reaching the top 1% of its range over the past year, a sign that short-term volatility could increase.
- Leveraged positions in the derivatives market have been cleared out quickly, but XRP supply flowing onto exchanges remains at a high level.
- Cumulative net inflows into spot XRP ETFs have reached about $1.8 billion, while Nasdaq-listed treasury company Evernorth manages about 473 million XRP, suggesting institutional demand could absorb part of the increase in exchange supply.
Forecast Trend Report by Period
XRP holdings on exchanges have risen to about 11.81 billion tokens, reaching the top 1% of the past year’s range. The increase in tokens available for sale on exchanges could heighten short-term volatility, CoinGape reported.
CoinGape reported on October 19, citing CryptoQuant data, that XRP exchange holdings stood at about 11.81 billion tokens. That places the figure in the 99th percentile of the past 365 days.
On-chain analyst CryptoOnchain wrote on X on October 18 that XRP supply on exchanges was increasing even as leverage in the derivatives market was falling rapidly.
Binance XRP open interest has dropped about 15.8% from the start of this month. Long liquidations also surged over the same period, indicating that a substantial share of leveraged positions has been cleared.
"Leverage reset faster than exchange supply," CryptoOnchain wrote. In other words, excessive positioning in the derivatives market has eased, but the amount of XRP moved onto exchanges remains high.
Earlier, 1.6 billion XRP flowed from large wallets to Binance over the past 30 days, the highest level in six months. XRP has recently traded in a range of $1.28 to $1.35.
Still, a rise in exchange holdings does not necessarily translate into immediate selling pressure. CoinGape said it was necessary to monitor the direction of net exchange inflows and spot exchange-traded fund flows over the next five to 10 trading days.
Cumulative net inflows into spot XRP ETFs currently stand at about $1.8 billion, while Nasdaq-listed XRP treasury company Evernorth manages about 473 million XRP. The report said that institutional demand could absorb part of the increase in exchange supply.
