Crypto commentator KINGVALEX has reported a significant decrease in XRP held on the Binance exchange throughout October. The reserves saw an approximate decline of 300 million XRP during this period.
On-chain data visualized in a chart indicates that exchange-held balances reached a peak near three billion XRP at the close of September. This figure subsequently dropped to approximately 2.7 billion XRP by the end of November.
This reduction in visible, tradable supply on one of the largest cryptocurrency exchanges has drawn considerable attention, prompting renewed examination of market depth and overall liquidity conditions.
$XRP RESERVES in BINANCE FELL BY 300M XRP IN OCTOBER.
WHALES ARE LIKE…
“Yea we gave you crumb grabbers enough time to accumulate for years now we are wiping you THE FUCK OUT“ pic.twitter.com/5JKst4J9ta
— KINGVALEX (@VALELORDX) November 27, 2025
Implications of Declining Binance XRP Reserves
Analysts commonly interpret a substantial decrease in Binance's XRP reserves as a sign of liquidity being withdrawn from the open market. Such significant movements are typically attributed to large holders transferring assets to private wallets, custody solutions, or engaging in institutional acquisitions, rather than retail-level trading activity.
When this reduction occurs concurrently with sustained accumulation trends, it often suggests a diminishing pool of XRP available for trading on exchanges. If withdrawal rates persist, the accessible supply on major trading platforms can rapidly tighten, rendering the market more susceptible to concentrated buying pressure.
ETF Inflows Intensify Liquidity Tightening Narrative
Recent media analyses highlight how the emergence of new U.S. Exchange-Traded Funds (ETFs) and other institutional products have amplified scrutiny on exchange liquidity. Initial trading activity for these ETFs reportedly generated substantial interest in XRP, with issuers acquiring significant quantities from the open market during their inaugural week.
Reports indicate that XRP vehicles absorbed approximately 79 million XRP in a single day, with Franklin Templeton accounting for a major portion of these purchases. These transactions are viewed as direct inflows that remove tradable XRP from exchange order books, thereby bolstering the supply-squeeze narrative.
Understanding the Impact of a Supply Shock on Price Dynamics
Market observers describe a supply shock as a market condition where the growth in demand exceeds the available tradable supply. This imbalance compels buyers to compete for limited assets, potentially at higher price points.
When institutional purchases are executed off-exchange or through large block trades, the depth of order books on centralized exchanges can rapidly decrease, diminishing the market's capacity for immediate absorption.
Market participants anticipate that sellers will re-enter the market when prices reach more attractive levels. This dynamic can lead to sustained upward price pressure if demand continues to remain robust.
Forward-Looking Perspective
Considering the current observable asset flows and early ETF activity, there is a distinct possibility that continued institutional inflows could further constrict visible exchange liquidity. This scenario could potentially lead to more pronounced price movements for XRP.
Market participants are expected to closely monitor exchange reserve metrics and ETF flow data. This observation will help determine whether the recent decline in reserves represents a temporary reallocation of assets or the commencement of a more enduring supply constraint.