More than 149 million XRP, worth approximately $336 million, were withdrawn from centralized exchanges within 24 hours, coinciding with the U.S. launch of the XRP spot ETF.
The withdrawals highlight market volatility and a lack of immediate demand, despite the ETF launch, causing an almost 9% drop in XRP’s price.
Significant XRP Outflow from Exchanges
149 million XRP, valued at $336 million, were withdrawn from exchanges within 24 hours, marking significant activity. XRP experienced one of the largest single-day outflows, coinciding with the debut of a U.S. XRP spot ETF. Crypto Patel, Analyst, noted:
"Markets move before headlines. Retail moves after."
Ripple Labs' leadership, including CEO Brad Garlinghouse, have not provided any official statements regarding the outflow. Confirmed data from CryptoQuant and Binance show a decline in large wallet withdrawals since October, reflecting complex market dynamics.
Market Reaction and Price Impact
Market responses indicate a 9% drop in XRP prices even as ETF trading volume showed significant figures. The sharp reduction in liquidity suggests a move to cold storage rather than immediate trading activity. Steph discusses crypto trends and market analysis.
The financial community observed the market shifts with caution. Institutions like Robinhood acknowledged the development although no comments were provided by crypto key opinion leaders. On-chain indicators revealed no explosive growth despite the outflows. Cryptollica reveals latest cryptocurrency news.
Future Market Dynamics and Outlook
Historical precedents show similar outflows correlated with low volatility. Despite possible positive indicators, the absence of immediate demand raises questions. Crypto KOLs have not made statements, and no regulatory actions or announcements were reported.
Potential future effects might include price stabilization if supply shocks address enduring demand. The event reflects the strategic shift to long-term holdings, underscoring the market's readiness to react to significant volumes withdrawn.