- The ‘Kimchi’ drain
- XRP’s plunge
According to recent data shared by crypto researcher Leonidas Hadjiloizou, major cryptocurrency trading platforms have logged a net outflow of nearly 22 million XRP in the first week of the year.
The analysis, which tracks wallets holding at least 1 million XRP, reveals the total balance across tracked exchanges has dropped by 0.14% since December 31.
Still, the narrative of a “supply shock” might be far-fetched. XRP frequently sees $2–$4 billion in daily trading volume. At a price of roughly $2.20, that represents roughly 1–2 billion XRP changing hands every single day. A movement of 22 million XRP represents an infinitesimal 1% of a single day’s volume.
The ‘Kimchi’ drain
Still, the data is rather peculiar because it shows a significant divergence in regional behavior. The most notable drops occurred on South Korean exchanges.
Korean traders are often responsible for driving XRP rallies, which was the case last year.
Upbit, the leading Korean exchange, recorded a decline of nearly 36 million XRP.
The second-largest outflow comes from Bithumb, another Korean giant, with a drop of roughly 8 million XRP.
In contrast, Binance, the world’s largest exchange, actually recorded an increase in XRP holdings over the same period. Its balances increased by nearly 28 million XRP. Crypto.com also shows an inflow of roughly +9 million XRP.
XRP’s plunge
In the meantime, XRP has experienced a violent correction. The Ripple-affiliated token has plunged by more than 7% within 24 hours.
The buyers exhausted themselves right around the $2.38–$2.40 level. This, of course, has dampened hopes of a sustained rally.
Source: https://u.today/xrp-supply-shock-22m-tokens-leave-exchanges
