TLDR
- Coinbase’s XRP supply drops 90%, from 970 million to 99 million, in just three months.
- Only six cold wallets remain active on Coinbase with 16.5 million XRP each.
- Recent transfer saw 16.5 million XRP worth $51.4M moved to Coinbase.
- XRP stays third in market cap at $183 billion, despite Coinbase’s declining holdings.
Coinbase has seen a massive reduction in the amount of XRP it holds, with new data revealing that the exchange’s XRP supply has dropped by nearly 90%. This dramatic decrease comes after Coinbase held almost a billion XRP at the beginning of the summer. The sudden decline raises questions about the reasons behind the shift and where the coins are moving.
Coinbase’s XRP Holdings Plummet
At the start of the summer, Coinbase stored approximately 970 million XRP across 52 cold wallets. These wallets were notably significant, with ten of them holding 26.8 million XRP each. The remaining wallets contained another 16.8 million XRP combined. This made Coinbase one of the largest visible XRP holders in the market.
However, by mid-September, only six cold wallets remained active, each containing about 16.5 million XRP. The total amount of XRP held by Coinbase had dropped to roughly 99 million, marking an 89.79% decline in just a few months. This drop has raised concerns about what might be happening with the remaining XRP supply.
Uncertain Movement of XRP
Despite the significant reduction in Coinbase’s XRP holdings, transfers of XRP to the platform continue. For example, a recent transaction saw over 16 million XRP worth approximately $51.4 million moved from an unknown wallet to Coinbase. The exact reasons behind these transfers are unclear, leaving traders speculating about potential buyers or usage.
Some believe that institutions or large companies, such as BlackRock, might be using Coinbase to buy XRP for their clients. However, the on-chain data does not provide clear insight into where the XRP goes once it leaves the exchange’s cold storage. This ambiguity has sparked further debate about the future of Coinbase’s role in the XRP market.
Questions About Future Custody Solutions
The drastic decrease in Coinbase’s XRP supply brings up several possibilities. One potential explanation is that the coins are being moved to alternative custody solutions, such as private vaults or new storage methods. Another theory is that the XRP is being shifted to different exchanges or platforms for trading purposes.
As Coinbase’s holdings continue to shrink, the question remains: where is all the XRP going? The movement of XRP could signal a broader shift in how large amounts of the cryptocurrency are managed, especially by institutional players. The lack of transparency in the transfers adds to the uncertainty surrounding Coinbase’s role as a major custodian of XRP.
XRP’s Market Position Remains Strong
Despite the significant decrease in Coinbase’s XRP supply, the cryptocurrency continues to hold its position as the third-largest digital asset by market capitalization. As of mid-September, XRP’s market value stood at around $183 billion. This positions XRP behind only Bitcoin and Ethereum in terms of total market size.
The strong market position of XRP suggests that the drop in Coinbase’s XRP holdings might not reflect any broader issue with the cryptocurrency’s overall health. However, the shift in custody and storage could impact future market trends, as the handling of large amounts of XRP becomes more decentralized or privatized.
While the full story behind the dramatic decrease in Coinbase’s XRP holdings remains unclear, it highlights the dynamic and sometimes unpredictable nature of the cryptocurrency market. Investors and analysts alike will be closely monitoring future developments as more information becomes available.
