Ripple’s XRP has recently made headlines with a notable shift to Binance, where whale investors have been making significant deposits since 2021. This trend raises new hopes for XRP’s long-term appreciation as it continues to gain traction in each bull cycle.
Since 2021, XRP reserves on Binance have increased, despite a general pruning of liquidity pools and trading pairs across various exchanges. Whale activity has intensified, with deposits ramping up significantly in the latter months of 2021. Notably, over 14% of all XRP trading is concentrated within two trading pairs available on Binance, making it a central hub for speculating on XRP volatility.
According to CryptoQuant, whales have been strategically holding onto their XRP, opting not to move their assets despite fluctuating market conditions. One key reason for this is Binance's continued support for XRP staking, even as it reduced some trading activities to navigate US regulatory challenges. The relisting of XRP on Binance in the summer of 2023, alongside its ability to stake, has kept these large holders engaged on the platform.
While Binance remains a dominant player in the XRP space, other exchanges have also attracted whale interest. Smaller exchanges like Bitso, Bitstamp, and Bybit have become popular choices for anonymous whales, with notable transfers occurring following XRP rallies. For instance, one whale transferred over $11 million in XRP to Bitso, indicating that while Binance holds a significant amount, some whales are diversifying their holdings across different platforms.
Binance currently holds XRP in eight wallets, making it one of the largest holders after Ripple itself. The Binance 4 wallet alone boasts holdings of 1,477,168,713 XRP, valued at more than $805 million. In total, Binance’s wallets contain 3,126,845,450 XRP, valued at over $1.7 billion. While this is a substantial amount, it remains small compared to the total supply of 99.99 billion XRP, with approximately 50 billion currently circulating.
Attention has recently shifted back to XRP as the deadline for the US Securities and Exchange Commission (SEC) to appeal its decision passed without action. This development provides Ripple with strong grounds to assert that XRP is not an unregistered security, potentially paving the way for renewed trading and investment interest.
Despite the positive developments surrounding the lawsuit, skepticism remains among investors. XRP has struggled to break out of a price range of $0.40 to $0.68 for several years, failing to sustain upward momentum even with favorable news. The asset has not traded significantly above $1 since 2017, leading to concerns about its speculative potential.
As Ripple seeks to expand its offerings—including stablecoins, payments, tokenization, and secure custody—the relevance of XRP in some use cases may diminish. Ripple has supplied partners with XRP tokens, indicating that banks and payment institutions may not need to acquire XRP from the open market, further complicating the token's demand dynamics.
Despite its sideways trading pattern, XRP has experienced a small-scale recovery, with open interest rising above $590 million, the highest level since April. However, trading volumes remain between $1.2 billion and $1.5 billion—substantially lower than the peak levels above $5 billion seen in 2018 and 2021.
Ripple’s XRP has entered a new chapter with its shift to Binance, where whale activity continues to suggest a strategic buildup of assets. While the potential for a price rally exists, the market remains cautious, especially given XRP's historical price stagnation. As developments unfold—especially regarding regulatory outcomes and Ripple’s strategic direction—the future of XRP as both a speculative asset and a utility token remains uncertain. Investors will need to keep a close watch on market dynamics and sentiment to gauge XRP’s next steps.
October 2024, Cryptoniteuae