XRP Exchange Balances Drop as Institutions Accumulate — November 29 Update
Fresh on-chain data (Nov 29) shows a continued decline in XRP held on exchanges, with total exchange balances around 15.81 billion XRP — roughly 6.54 billion XRP (≈29.3%) lower since February. Major outflows were recorded at Upbit (−16.8M XRP), Bithumb (−3.8M XRP) and Binance (−2.1M XRP). Several venues (Bitget, Stake, BTC Markets, Bitso, Luno) showed large percentage or multi-month declines. Conversely, Coinbase, Gemini, Kraken and Bybit saw inflows or rebounds in their inventories. The report highlights a concentrated institutional accumulator — Evernorth — which showed significant net holdings and no outflows on the snapshot day. Analysts and community commentators interpret the asymmetric, concentrated withdrawals as likely institutional accumulation, custodial relocations, or local market moves; some view it as coordinated accumulation that could precede structural supply tightening in spot markets. The update stresses that diminished exchange liquidity may affect price sensitivity, but whether removed supply returns to markets will determine short-term price moves and longer-term dynamics. Disclaimer: informational only, not financial advice.
Bullish
Net withdrawals of XRP from exchanges — a ~29% decline in on-exchange supply year-to-date — reduce available spot liquidity. When exchanges hold less of an asset, smaller buy orders can have a larger price impact, which tends to be bullish if the removed supply is held long term by institutions. The presence of a concentrated institutional accumulator (Evernorth) and coordinated large withdrawals at specific venues increase the likelihood that a portion of supply is being placed into long-term custody rather than rotated between trading venues. Historical parallels: BTC and ETH have seen price support following significant exchange outflows during institutional accumulation phases (e.g., large custody inflows ahead of ETF purchases), where reduced exchange liquidity amplified price moves. Short-term: the news can trigger volatility — possible quick upswings on reduced sell-side depth or temporary sell pressure if some withdrawals are custodial relocations that later re-enter markets. Long-term: persistent institutional accumulation and lower exchange inventories are structurally supportive for price, assuming institutions do not rapidly liquidate. Risks remain if withdrawals are followed by rapid re-listing, custodial rehypothecation, or if macro factors trigger broad sell-offs — those scenarios would be neutral-to-bearish. Overall, asymmetric outflows and concentrated accumulation point toward a bullish bias for XRP, contingent on continued long-term custody and limited relisting.