Coinbase defies the broader trend by reducing XRP holdings: lack of demand or fierce platform competition?
Ripple (XRP), one of the biggest altcoin incumbents to hit a triple-digit growth this year, is lately getting very scarce on centralized crypto exchanges (CEXs). Coinbase, the largest American crypto exchange which had recently introduced XRP Futures trading, has seen a 69% plunge from the last quarterly report.
According to the blockchain register, Coinbase now owns 249,161,825 XRP coins, a whopping 57% drop in a month. This tremendous drop in XRP’s reserves on the largest American crypto platform sparked debate over whether this is a sell-off answering to the lacking customer demand or a maintenance move.
What’s Behind Coinbase’s Dripping XRP Reserves?
Notably, Coinbase gradually decreased XRP holdings from the second quarter of 2025. Going from a solid 970 million tokens held across 51 hot & cold crypto wallets, this number was sliced to 16 Coinbase-linked crypto wallets, plunging by 69% since the second quarter’s Coinbase proof of reserve report was published.
Per XRP crypto rich list, Coinbase now fell out of the TOP 10 largest Ripple coin holders. Slimming their balances by another 49,858,949 XRP tokens since last month, Coinbase displays an uncanny trend, as most other centralized crypto exchanges are topping up.
Does this imply a lack of demand in Ripple coin on Coinbase? Judging from the trading volumes on Derivatives, Coinbase cannot compete with Binance, Bybit & Bitget, all nailing billions in 24-hour XRP Futures trades. Conversely, Coinbase’s XRP trading volumes revolved around $112 million at the time of the writing, which explains the plunging on-demand reserves.
On The Flipside
* A multi-million XRP whale deposit was recently seen entering Coinbase, painting a contrasting story to the gradually reducing Ripple coin assets on the exchange.
Why This Matters
Ripple is among the best-performing altcoins so far in 2025 due to multiple regulatory wins, as well as a high probability of an exchange-traded fund launching this year.
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