XRP reserves held on the Binance cryptocurrency exchange have plummeted to their lowest level in eight years, dropping to approximately 2.6–2.65 billion tokens as of late 2025. This significant decline, from a previous higher level, is attributed to large-scale outflows, including a single-day movement of roughly 1.4 billion tokens into cold storage. The remaining liquid reserves on the exchange are now reportedly below 1.5 billion tokens.
Market analysts link this drawdown to increased demand from institutional investors via spot XRP Exchange-Traded Funds (ETFs), which were approved in the U.S. in late 2025. These ETFs initially drove over $1 billion in assets within weeks of their November launch. However, recent data indicates a cooling in this institutional enthusiasm, with the past week marking the weakest inflows since the ETFs' inception. In one recent session, XRP ETF products saw a net inflow of $19.12 million, bringing cumulative inflows to over $1.2 billion, but outflows have persisted.
The reduction in exchange-held supply is seen as a potential bullish signal for XRP's price, as it may reduce immediate sell pressure on the market. Historically, such large outflows from exchanges have preceded bullish phases. The market is closely watching these liquidity shifts, with XRP currently trading around $2.08 and struggling to hold recent gains amid the ETF volume slowdown.
Concurrently, attention is shifting toward utility-focused altcoins like Remittix (RMTX), which is highlighted as an alternative investment. The PayFi project, aimed at cross-border payments, has secured $28.8 million in private funding and has launched its wallet on the App Store, with a full platform launch scheduled for February 9, 2026. Traders and institutions are reportedly awaiting clarity from the upcoming Federal Open Market Committee (FOMC) meeting before making further moves in the XRP market.
