Coinbase XRP Reserves Drop 83% in Institutional Supply Shift
On-chain data shows that Coinbase XRP reserves drop 83% between June and September 2025, falling from 970 million to 165 million XRP. This large Coinbase XRP reserves drop is driven by cold wallet consolidation—shrinking 52 addresses to just 10 each holding ~16.5 M XRP—and a strategic supply rotation into on-demand liquidity corridors and institutional channels coinciding with the Aladdin integration. The uniform balances suggest institutional reallocation rather than retail withdrawals. The lower visible exchange supply may tighten liquidity on Coinbase and influence price dynamics. Traders should track escrow schedules, institutional custody flows, and on-chain wallet movements to gauge further supply shifts. Key metrics include an 805 M XRP reduction, an 80% cut in cold-wallet count, and balance realignments from ~25 M to ~16.5 M XRP per address. Monitor on-chain explorers and liquidity corridor activity to anticipate market impacts.
Bullish
The 83% drop in visible Coinbase XRP reserves indicates significant supply tightening on a major exchange, a bullish signal for XRP. Similar on-chain reserve draws in Bitcoin have preceded upward price moves by reducing available supply. The consolidation from 52 to 10 cold wallets and strategic institutional reallocation into liquidity corridors suggest strong buy-side demand and coordinated holdings, limiting tokens available for sale. In the short term, reduced exchange liquidity may increase volatility if sell orders outnumber bids; however, sustained institutional custody typically supports higher price floors over the long term. Traders should watch for further on-chain shifts, escrow releases, and institutional product launches as catalysts for continued bullish momentum.