Blockchain analytics platform CryptoQuant has reported that large XRP investors have been withdrawing assets heavily from Binance in recent days. According to the data, a total of approximately 403 million XRP has been withdrawn from Binance since May 3rd.
It was noted that most of these transactions consisted of 1 million XRP and above, and that the data predominantly reflected the behavior of whales and institutional investors.
The analysis added that since May 3rd, Binance has seen large withdrawal transactions exceeding the 1 million XRP threshold almost daily. CryptoQuant stated that this indicates a steady outflow trend on one of the world’s largest cryptocurrency exchanges, rather than a one-off event.
The company noted that large investors withdrawing their assets from exchanges can generally reduce the supply on liquid trading platforms. While this doesn’t guarantee a direct rise in the XRP price, it could alleviate short-term selling pressure and signal a shift towards stronger holding tendencies among large investors.
CryptoQuant also noted that the current volatility differs from the pattern seen on Coinbase in the previous period. It was recalled that on March 27, March 30, and April 13, when XRP was trading around $1.34, large outflows were prominent on Coinbase. These transactions indicated that large investors were accumulating in lower price regions.
However, it has been noted that activity has recently shifted to Binance. The continuous large XRP outflows from Binance after May 3rd coincided with the period when the XRP price recovered to the $1.47 region. CryptoQuant stated that this pattern is significant because large withdrawal transactions are no longer seen only on specific days, but are becoming a permanent trend.
The company stated that historically, regular and large-scale outflows of cryptocurrency from exchanges have often been interpreted as a decrease in the desire for accumulation, storage transfers, or short-term selling.
*This is not investment advice.