"Whales Withdraw XRP from Binance"...What's Behind the 1-Month Record Withdrawal?

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The proportion of XRP withdrawals from Binance has risen to its highest level in about a month. This analysis suggests that as XRP fell to $1.37 amid market weakness after climbing to $1.54 on May 14, the movement of XRP out to external wallets became stronger than the inflow into the exchange.

The Crypto Basic reported on May 22 (local time), citing an analysis by CryptoQuant certified analyst Amr Taha, that the proportion of XRP withdrawal transactions on Binance had risen to its highest level in about a month. This indicates that more withdrawal transactions are occurring on Binance than deposit transactions.

According to Taha's 7-day transaction ratio data, withdrawal transactions accounted for 53% of XRP activity on Binance, while deposit transactions accounted for 47%. This is one of the strongest withdrawal-dominant trends since April 10. At that time, while XRP was trading around $1.34, the withdrawal ratio was 53.4% and the deposit ratio was 46.5%.

Taha considered it significant that XRP is currently trading around $1.37, showing the same withdrawal-dominant structure at a similar price range as on April 10. A high withdrawal ratio means that more XRP is moving to external wallets rather than entering Binance. However, this does not automatically imply a price increase; it was interpreted as a signal that selling pressure on the exchange has decreased or that holders are increasingly moving to store XRP in external wallets.

The movement of large holders also increased. In previous analysis, Taha stated that the withdrawal ratio from large wallets exceeding 1 million XRP on Binance had risen to 57.6%. This is the highest level since the surge to 66% on March 28. A high withdrawal ratio close to 60% was also observed at the end of April.

These surges in whale withdrawals all occurred when XRP was trading in a relatively narrow price range between $1.33 and $1.42. The Crypto Basic reported that large holders are currently moving XRP out of Binance in the same price range as during previous surges in whale activity.

A different trend was observed on Coinbase. Taha explained that the withdrawal ratio from wallets exceeding 1 million XRP on Coinbase dropped to 14.8%, the lowest level since April 11. Conversely, the withdrawal ratio from medium-sized wallets holding 10,000 XRP to 100,000 XRP increased from 19% on April 11 to 36% on May 19. This implies that medium-sized wallet activity has become more active on Coinbase than that of the largest holders.

The increase in Binance's XRP withdrawal ratio and the increased external movement of whale wallets showed that holder behavior is changing even amidst market weakness. As XRP again showed a withdrawal-dominant structure around $1.37, storage demand and large wallet movements, rather than exchange inflows, have emerged as key variables in short-term market trends.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*