On-chain data shows large XRP holders stepped up withdrawals from Binance in February, signaling a potential shift in positioning among major investors. If sustained, the outflows could reduce sell-side liquidity and support price stability, according to a CryptoQuant analysis.
XRP Whale Outflows Intensify on Binance
In a Quicktake post on CryptoQuant, market analyst Amr Taha reported significant negative readings on the Multi Exchanges Daily Whales Netflow metric for XRP, led by activity on Binance, the world’s largest crypto exchange by trading volume. The metric tracks daily net flows of XRP held by whale wallets across 15 major exchanges.
Negative netflows indicate more XRP leaving exchanges than entering. As of February 27, approximately 44 million XRP flowed out of whale-linked addresses on Binance. Earlier in the month, on February 6, around 30 million XRP also exited these wallets, suggesting the move was not an isolated event.
What Netflows Reveal About Investor Intent
Rising exchange inflows often imply increased intent to sell or trade, while sustained outflows can indicate reduced near-term selling pressure. The recent negative netflows suggest larger holders may be accumulating XRP or moving tokens into long-term storage (e.g., cold wallets), thereby removing supply from the market’s immediate trading venues.
Potential Impact on Price and Liquidity
Historically, sizeable outflows from exchanges can tighten available spot supply. If demand remains steady or increases while circulating exchange balances fall, market dynamics may skew toward upward price pressure. The analyst notes that significant net outflows can correspond with a reduction in tradable XRP, a factor that has previously aligned with constructive price action.
Market Context
XRP is the native token of the XRP Ledger, commonly used for fast, low-cost value transfers and frequently cited in cross-border payments discussions. At the time of the analyst’s note, XRP traded near $1.37, down about 2.9% on the day.