Coinbase XRP Reserves Plunge ~90% in Cold Wallet Shift
Coinbase XRP reserves have collapsed from roughly 970 million in June to about 65.6 million by mid-September, marking a near 90% drop. On-chain data shows 48 of 52 tracked cold wallets now report zero balances, while the remaining four each hold about 16.4 million XRP. Multiple off-chain transfers consolidated funds, highlighted by a single weekend movement of 16.5 million XRP. The visible outflows fuel debate over whether Coinbase is restructuring custody addresses or quietly facilitating institutional accumulation. Despite the decline in on-exchange XRP reserves, no substantial sell-side activity is confirmed. Reduced exchange liquidity may tighten order-book depth, potentially increasing short-term volatility. Traders should monitor on-chain transfers and await official statements on custody changes to gauge true market demand versus routine security practices.
Bullish
The near 90% reduction in Coinbase XRP reserves removes significant supply from exchange order books, which can tighten liquidity and create upward price pressure. The consolidation into fewer cold wallets and notable off-chain transfers suggest institutional accumulation rather than outright selling. In the short term, reduced on-exchange XRP liquidity may heighten volatility as fewer tokens are available to absorb market orders. Over the longer term, if major holders are building positions via Coinbase’s custody rails, sustained demand against dwindling visible supply could drive a bullish trend for XRP.