The amount of XRP tokens on the leading cryptocurrency exchange Binance has dropped substantially in recent times, suggesting user accumulation.
CryptoQuant highlighted this bullish event for XRP in an X post on Thursday, citing recent on-chain activities. It also buttressed what this event suggests, using a piece from a verified author, Darkfost.
XRP Disappearing from Binance
Notably, Darkfost identified that this activity has intensified since October, indicating a persistent trend of XRP accumulation. Over 300 million XRP, valued at $651 million at the current price, has been withdrawn from Binance since October 6, the analysis highlighted.
As a result, XRP’s reserve on Binance has now dropped to 2.7 billion tokens, one of its lowest recorded amounts on the exchange. Darkfost stated that, while not all may represent whale accumulation, the trend is far too consistent to go unnoticed.
He stated that a “tiny” portion of these movements may be wallet redistribution among holders or the exchange. However, others are actual withdrawals from Binance, suggesting a shift towards long-term holding. This is bullish for XRP, as it reduces short-term selling pressure.
ETF Launch Alignment Adds Volume
Notably, this withdrawal closely aligns with the launch of the US spot XRP ETFs. The Canary Capital XRP ETF debuted on November 13, followed by the products from Bitwise, Grayscale, and Franklin Templeton.
Darkfost stated that these changes things for XRP, shifting the asset from a standard cryptocurrency to a product accessible to institutions through several traditional wrappers. Furthermore, its coincidence with the accumulation further strengthens the significance of these withdrawals on XRP.
Remarkably, the XRP ETFs have made a fast start to their trading days on Wall Street and could be on track to meet hefty inflow projections from industry leaders. With XRP increasingly scarce on exchanges, additional demand from institutions would create a supply shock.
The analyst said that if the trend kept building, XRP could shift into a more orderly phase and attract greater attention from institutions.
Supply Shock Impact on XRP Price
Meanwhile, analysts are already putting the possible impact of this bullish development into a price context. Should this dual accumulation persist, and a supply shock kick in for XRP, analyst Chad Steingraber has highlighted possible price scenarios for XRP.
He calculated the price impact using a conservative $33.6 billion annual inflow and an XRP price factor, which determines how quickly asset managers accumulate. He outlined a 5x-100x model, culminating in an XRP price range of $11.25 to $225 per coin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
