The pace of XRP cryptocurrency withdrawals from Binance, the world’s largest digital asset exchange, is increasing on the back of growing interest from institutional investors.
This happens especially After the launch of the first XRP Spot Exchange Traded Fund (ETF) Two weeks ago on the US stock market.
Reserves on the platform have fallen to one of the lowest levels, at approximately 2.7 billion XRP (equivalent to approximately $5.94 billion).
Since October 6th, approximately 300 million XRP (equivalent to $660 million at current prices) has been withdrawn from Binance.
Although exchange internal dynamics may justify some of this outflow, Consistency in trends indicates broader market trendspresents an analysis shared by CryptoQuant, an on-chain data provider, created by a trader known as Darkfost.
The graph below shows the relationship between the dollar price of XRP and the total amount of XRP reserves held on the Binance exchange from August to the end of November.
Significant reductions in reserves on centralized exchanges like Binance are often interpreted as a positive indicator of demand. Suggests investors are withdrawing XRP and storing it in private walletsindicating long-term maintenance intent.
Impact of dynamics on XRP
A small amount of XRP that can be sold instantly on exchanges, New ETFs will further increase demand from expanding institutional investorsThe service, launched by managers such as Canary Capital, Franklin Templeton, Bitwise, and Grayscale, is creating a potentially bullish market composition, according to a report from CriptoNoticias.
To be precise, the cryptocurrencies on the market reflect this movement. It rose 10% last week, from $1.82 to $2.20..
The combination of increased demand from institutional investors and increasingly scarce supply on Binance creates a supply shock, which the market interprets as a sign that XRP supply will be cut off. There is a possibility that prices will break out of the flattening stage and enter a new period of rising prices.
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