After wrapping up what has proven to be its best performing month so far in 2026, XRP appears to have seen sustained demand from investors for the most part of the month.
Amid the steady market demand, hundreds of millions of XRP have been moved off Binance, causing its supply on Binance to slump back to levels last seen in early 2024, per data from crypto analytics platform CryptoQuant.
XRP reserve on Binance prints bullish signal
Notably, the data shows that the monthly average of XRP held on Binance has fallen from over 3.1 billion tokens in November 2025 to about 2.6 billion as of September 1, 2026.
Apparently, this implies that about 500 million XRP have been pulled out of Binance in less than a year, signaling prolonged demand for XRP on the leading crypto exchange.
The XRP reserve metric on Binance has drawn attention from the crypto community, especially market analysts, as XRP has remained volatile during the period it was shrinking.
Although XRP saw a major price breakout last month, ending August with a gain of about 30%, it is still trading well below its previous high of $3.66.
While it has settled around $1.35 following the parabolic price move, XRP remains about 63% away from reaching its record price level or even setting a new high.
What's driving XRP demand?
While the shrinking XRP supply on Binance indicates that at least some market participants were accumulating the token, possibly to hold for the longer term, the metric prints a bullish signal for XRP.
It remains a crucial fact that when coins move away from exchanges, there will be fewer tokens left for immediate selling, potentially reducing sell pressure, which could eventually contribute to a recovery in the price of the asset.
U.Today Editorial Team
Dan Burgin
