XRP Exchange Supply Ratio on Binance Drops to a 2-Year Low of 0.025

The XRP exchange supply ratio on Binance, the world’s largest exchange by trade volume, has dropped to a new 2-year low.

This bullish development comes despite the persistent bearish pressure surrounding XRP and the broader crypto market, with the token’s price currently witnessing a discouraging 60% crash from its July 2025 peak of $3.66.

For context, the exchange supply ratio metric assesses the ratio of the amount of XRP tokens held within an exchange to the total XRP supply. When this metric drops, it often indicates that the exchange holds fewer XRP tokens compared to the overall supply, and this could hold bullish implications for prices.

Key Points

• The XRP exchange supply ratio on Binance has seen a gradual decline since Q4 2025, recently reaching a low of 0.025.
• The last time the ratio saw this low reading was in January 2024, when XRP still traded within the range of $0.5 to $0.6.
• As the metric assesses the ratio of exchange-held XRP tokens to the total XRP supply, a decline in its reading could mean more investors are pulling their assets out of the exchange.
• Historical data indicates that sharp declines in the ratio have often aligned with XRP price downturns and preceded a price recovery.
• However, this does not necessarily point to an imminent supply shock, as Binance still holds over 2.7 billion XRP across its top 10 wallets.

XRP Exchange Supply Ratio Hits 2-Year Low

On-chain data sourced by market analytics resource CryptoQuant confirmed the recent development, as investors appear to be reacting to the ongoing market onslaught. 

Notably, despite a relief bounce on Wednesday, which led to a 6.36% price spike, XRP continues to see massive losses. With a 14.35% decline in February alone, XRP remains on track to record a fifth consecutive monthly red candlestick for the first time since early 2017.

However, Binance has continued to see consistent XRP outflows on its platform amid the downturn. Specifically, the collapse of the XRP exchange supply ratio on Binance to 0.025 marks a 17% drop from the 0.0302 reading from October 2025, when the current market onslaught picked up momentum. 

Binance Still Holds 2.7B XRP Across 10 Wallets

With XRP boasting a total supply of around 99.9 billion tokens, this drop in the ratio of supply on Binance indicates that the exchange has witnessed outflows to the tune of 500 million XRP since the price downtrend began in October 2025. 

For context, the sharpest declines in this ratio played out in mid-October 2025 and more recently, in mid-February 2026. During the mid-October crash, the exchange supply ratio dropped from 0.0303 on Oct. 8 to 0.027 by Oct. 17. Meanwhile, more recently, the metric also slumped sharply from 0.027 on Feb. 8 to 0.0255 on Feb. 9.

Nonetheless, this consistent drop does not necessarily point to an imminent supply shock in the short term, as some would like to believe. Binance still holds 2.7 billion XRP across its top 10 wallets, per data provided by XRPScan, an XRPL explorer. 

Possible Factors Behind the Drop

Notably, the drop in ratio suggests that holders are moving coins off the exchange instead of retaining them for possible sales. This can happen when large investors transfer tokens into private wallets for long-term storage, custody solutions, or OTC arrangements that don’t require keeping funds on an exchange. 

Further, it may also indicate a drop in speculative trading activity, meaning fewer traders are positioning XRP for short-term selling.

Another factor could be a broader market mood shift. When confidence in centralized exchanges dips, users tend to pull assets into self-custody regardless of price direction. Binance has been the subject of criticisms over the past few weeks, especially due to allegations surrounding the Oct. 10 market crash.

What Could This Mean for XRP Price?

In the short term, lower exchange supply reduces immediate sell pressure, which can help slow price declines and create conditions for a bounce if demand returns. 

On the other hand, if price keeps dropping despite shrinking exchange balances, it may indicate weak buying interest, meaning sentiment rather than supply is driving the market. That can keep the asset stuck in consolidation or gradual decline.

Interestingly, historical data shows that declines in the XRP exchange supply ratio on Binance have often coincided with price drops. However, when the metric reaches deep lows, what follows is a price recovery. This trend occurred in January 2025 before XRP hit $3.4 and in July 2025 before prices soared to the $3.66 peak.