200 Million XRP Pulled Off Binance In 10 Days — Is a Supply Shock Quietly Starting?

Over the past ten days, Binance has seen 200 million XRP withdrawn from its platform. The movement coincides with a drop in the exchange supply ratio from 0.027 to 0.025, as shown in a recent chart shared by crypto analyst Diana (@InvestWithD).

The data indicates that a notable portion of XRP has moved off the exchange, reducing the immediate supply available for trading.

Diana highlighted the trend, noting that when XRP leaves exchanges, it typically moves to cold storage, custodians, or long-term wallets. This shift removes tokens from active order books, potentially limiting liquidity for buyers and sellers.

Supply Dynamics and Market Impact

The exchange supply ratio measures how much XRP is available for trading relative to total circulation on an exchange. A declining ratio suggests that fewer tokens are accessible to meet market demand. This available supply has been shrinking since 2025 across major exchanges, increasing the potential for a supply shock.

While the recent withdrawals have not immediately triggered a price surge, the reduction in exchange supply sets the stage for a supply-driven market response if buying interest increases.

Currently, the XRP price remains at $1.42, despite the withdrawals. Lower exchange balances do not automatically translate to immediate price movements. Instead, the market often reacts once demand intersects with the reduced supply, creating upward pressure.

Historical Context of Exchange Outflows

XRP had experienced similar patterns, in which large withdrawals from exchanges coincided with later periods of upward price movement.

Historically, when tokens move to custodial wallets or cold storage, they are less likely to be sold quickly. This accumulation reduces sell-side pressure while maintaining potential for future demand-driven price appreciation.

The chart from Diana’s post shows that the exchange supply ratio and price have not moved in lockstep. The supply ratio dropped sharply while the price fluctuated within a narrow range. Notably, the withdrawal intensified after XRP’s recent drop to $1.13. This rapid withdrawal can influence market structure over time rather than producing instant volatility.

Potential for Increased Market Activity

If the trend of withdrawals continues, it could amplify the effect of future buying activity. With fewer XRP tokens readily available on exchanges, any increase in demand may trigger a supply shock, where limited availability drives sharper price movements.

The immediate price reaction has been muted. However, if demand intensifies while exchange holdings remain constrained, the setup favors stronger market activity and potential upward price movements.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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