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XRP’s supply ratio on Binance has fallen to its lowest level in two years, signaling a consolidation of buying interest and a potential price rebound driven by a strong supply shortage.
According to cryptocurrency media outlet U.Today on Feb. 27 (local time), the exchange supply ratio of XRP on Binance, the world’s largest digital asset exchange, has dropped to 0.025, marking its lowest level since January 2024. The exchange supply ratio measures the amount of a specific asset held on an exchange relative to its total circulating supply. A lower figure indicates a reduction in the volume readily available for immediate selling on the market.
Data from blockchain analytics platform CryptoQuant shows that XRP’s exchange supply ratio on Binance has been steadily declining since the fourth quarter of 2025. In particular, the current reading represents a roughly 17% drop from 0.0302 recorded in October 2025, supporting the view that investors are withdrawing assets from exchanges to private wallets or shifting into long-term holding mode.
Since the downturn began in October 2025, approximately 500 million XRP have reportedly flowed out of Binance. Although Binance still holds more than 2.7 billion XRP across its top 10 wallets, according to XRP Ledger explorer XRPScan—making an immediate supply shock unlikely—the continued outflows are serving as a key factor in easing potential selling pressure.
XRP has struggled after plunging about 60% from its July 2025 peak of $3.66. However, historical data indicates that strong price recoveries have followed whenever the exchange supply ratio bottomed out. In January and July 2025, prices surged shortly after exchange reserves hit similar lows, prompting market participants to interpret the latest metric shift as a potential signal of a major trend reversal.
The movement of assets off exchanges suggests a restoration of confidence in XRP’s long-term value. If the reduction in supply coincides with a rebound in demand, XRP could establish the technical foundation needed to break out of its current consolidation phase and enter a new upward trajectory.
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