Coinbase, one of the leading cryptocurrency exchanges globally, has seen a staggering drop in its XRP reserves, declining by 83% in just two months. Previously the fifth-largest holder of XRP among exchanges, Coinbase has now dropped out of the top 10, holding only 132.4 million XRP compared to 780 million just months prior. This significant shift has ignited discussions within the cryptocurrency community.
Top 10 XRP-Holding Exchanges
As Coinbase exits the top 10, here are the platforms leading XRP reserves:
- Upbit: 5.871 billion XRP
- Binance: 2.822 billion XRP
- Uphold: 1.739 billion XRP
- Bithumb: 1.655 billion XRP
- Bitbank: 575 million XRP
- Coincheck: 555.4 million XRP
- Etoro: 472.3 million XRP
- Crypto.com: 378.7 million XRP
- Coinone: 295.18 million XRP
- Kraken: 185.13 million XRP
Understanding Coinbase’s XRP Decline
Several factors may explain the dramatic reduction in Coinbase’s XRP holdings:
- Liquidity Programs: Increasing amounts of XRP may be getting shifted into liquidity and trust accounts, making them less visible on Coinbase’s platform.
- Institutional Transfers: Institutions may be managing their XRP holdings independently rather than through Coinbase.
- Market Timing: Coinbase could have reduced its XRP holdings during peak market activity.
Interestingly, despite this decline, Coinbase has recently demonstrated renewed interest in XRP. In July 2023, the exchange resumed XRP trading after an extended suspension linked to regulatory uncertainty. Additionally, Coinbase launched 5x leverage perpetual futures for XRP, highlighting its support for the token despite reduced reserves.
Regulatory Challenges and Ripple Effects
Coinbase’s relationship with XRP has been tumultuous. Back in January 2021, the platform suspended XRP trading due to a U.S. SEC lawsuit against Ripple Labs, the company behind XRP. In January 2023, Coinbase also announced the delisting of XRP and several other digital assets, citing low usage. However, a federal court ruling in mid-2023, which deemed XRP sales on exchanges were not securities, reignited interest in the token and led to its re-listing.
Despite recent controversy and speculation regarding price manipulation, community experts have generally dismissed such claims, noting XRP’s price trends have remained consistent even when delisted.
Coinbase’s Future with XRP
While some analysts speculate about Coinbase potentially parting ways with XRP entirely, the company’s latest initiatives suggest otherwise. CEO Brian Armstrong recently lauded the launch of U.S. perpetual futures for XRP, calling it a positive step forward for the cryptocurrency space.
As cryptocurrency markets continue to evolve, investors keen on XRP should monitor exchanges like Binance, Uphold, and others for liquidity and trading opportunities. If you’re looking to stay informed or diversify your crypto holdings, consider the Crypto.com exchange, a leading platform offering competitive fees and high liquidity for XRP and other major cryptocurrencies.
Final Thoughts
Coinbase’s declining XRP reserves mirror broader shifts in the cryptocurrency market. As regulatory pressures and investor dynamics evolve, platforms like Coinbase are increasingly adapting their strategies, and XRP continues to remain a focal point for traders and enthusiasts alike.
