The cryptocurrency market has witnessed a significant shift as Coinbase, one of the most prominent U.S. cryptocurrency exchanges, drastically reduced its XRP reserves by nearly 90% over the past three months. Based on data from XRPWallet via XRPscan, the decline has sparked debates among crypto enthusiasts and institutional investors alike.
What the Data Reveals
At the beginning of summer 2025, Coinbase held approximately 970 million XRP across 52 cold wallets, making it a key custodian of the digital asset. Ten of these wallets each stored 26.8 million tokens, while the other 42 wallets combined held an additional 16.8 million XRP. By mid-September, however, only six wallets remained active, containing about 16.5 million XRP each, marking an 89.79% decline to just under 99 million XRP altogether.
This dramatic reduction suggests consistent outflows over the summer as XRP was transferred from Coinbase’s cold storage to external destinations. Notably, a recent large transaction over the past weekend moved 16.5 million XRP, worth $51.4 million, back into a Coinbase-controlled wallet. The move prompted speculation among traders about whether institutional buyers are accumulating XRP privately.
Institutional Demand or Market Shift?
The substantial depletion of Coinbase’s XRP stocks raises broader questions about current institutional interest and market dynamics. With regulatory clarity around XRP still an issue in many regions, the destination of these transfers remains unclear. Possibilities include alternative custody providers, private vaults, or pre-defined trading arrangements. Meanwhile, XRP remains the third-largest cryptocurrency globally, with a market capitalization of approximately $181 billion.
Additionally, rumors surrounding a potential XRP exchange-traded fund (ETF) and speculations involving prominent asset managers such as BlackRock have kept analysts on edge. The redistribution of XRP could also signify a structural shift in how the asset is traded and stored—marking new opportunities and challenges for investors.
What This Means for Crypto Investors
The ongoing depletion of Coinbase XRP reserves underscores the volatility and unpredictability of the cryptocurrency market. For retail and institutional investors alike, understanding where these assets are flowing is key to navigating the space amid rapid shifts.
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Conclusion
Coinbase’s sudden pullback from XRP custody has left the crypto world buzzing with speculation. Whether this represents a structural market shift or the rise of private institutional arrangements, one thing is clear: XRP continues to be a focal point of intrigue in the digital asset landscape. As these developments unfold, staying informed and diversifying investments is critical to remaining resilient in the ever-evolving world of cryptocurrency.
