On-chain data reveals a dramatic and sustained withdrawal of XRP from centralized cryptocurrency exchanges, with reserves plunging to their lowest levels in several years. According to CryptoQuant, the total XRP held on exchanges has dropped sharply from approximately 2.65 billion tokens on December 31, 2025, to about 1.85 billion by early January 2026—a reduction of nearly 800 million XRP in just the first five days of the new year.
This exodus is particularly pronounced on Binance, a major hub for XRP liquidity. Data shows a clear pattern of decline throughout 2025, where collective exchange reserves fell from well above 3 billion XRP to the 2 billion range, with the trend accelerating into 2026. An even more conservative estimate from Glassnode, highlighted by the account BULLRUNNERS on X, suggests only 1.44 billion XRP remains on all exchanges, indicating a steep drop from 1.53 billion in recent trading sessions.
Concurrently, Ripple executed a massive, single transfer of 300 million XRP (worth over $652 million) to an unidentified wallet on January 5, 2026. Tracked by Whale Alert, this move has sparked speculation within the community about whether it represents a strategic repositioning, treasury management, or preparation for partnership activities. Such large transfers from Ripple have historically been watched closely for potential market implications.
The significant reduction of liquid supply on exchanges is considered a theoretically bullish signal for XRP's price, as it suggests a shift from readily tradable tokens to longer-term holding. This dynamic appears to be playing out in the market; XRP's price has reacted positively, reclaiming the $2 level and trading at $2.15 at the time of reporting, with a 6% gain over 24 hours that outpaced Bitcoin and Ethereum. Analysts note that these sustained exchange outflows align with consistent inflows into spot XRP ETFs, which have yet to see a day of net withdrawals since their launch, further tightening available supply.
