Coinbase Slips From Top 10 XRP Exchanges Amid Price Claims

TLDR

Table of Contents

Coinbase’s XRP holdings fell from 780M in July to just 132.4M by September.
Coinbase now has only 10 active wallets with XRP, down from over 60 earlier.
XRP liquidity has shifted to Binance, Bitget, and Bybit with higher trading volumes.
Analysts suspect Coinbase and Binance of manipulating XRP supply through wallet outflows.

Coinbase is no longer among the top ten exchanges by XRP reserves, raising concerns over possible price manipulation. Its XRP holdings have dropped sharply in recent months. Meanwhile, analysts are pointing to falling demand and a shift in liquidity to other exchanges. The development has sparked fresh debate about institutional involvement in XRP markets.

Coinbase’s XRP Holdings Drop by Over 80%

Recent blockchain data shows Coinbase now holds just 132.4 million XRP across 10 wallets. This is a major decrease from July when the platform held 780 million tokens in over 60 wallets. The sharp drop has pushed Coinbase below Kraken, which now occupies the tenth spot with 185 million XRP.

A closer look at recent transactions shows that Coinbase moved 16.53 million tokens out of one of its cold wallets. The amount was split into smaller transfers and sent to new external addresses. These types of transactions have raised questions among analysts tracking exchange movements.

Source: X; Transaction Tracking of Coinbase XRP Holdings

Trading activity on Coinbase’s XRP markets has also declined. Since the launch of XRP futures on the CME, more institutional liquidity has shifted to exchanges like Binance, Bitget, and Bybit. These platforms now handle over $1 billion in daily trading volume, leaving Coinbase behind.

Market watchers believe Coinbase’s reduced exposure could be linked to changing strategies around custodial holdings. Some say the exchange may be moving tokens to institutional wallets held off-platform. Others point to falling interest in XRP trading on U.S.-based platforms.

Allegations of Market Manipulation Surface

The steep drop in reserves has led to renewed claims that major exchanges might be influencing XRP’s market behavior. Crypto expert Stern Drew recently stated that Coinbase and Binance could be orchestrating what he calls a “supply chain attack” on open-source wallets. He argues that this pushes users away from self-custody and into centralized exchanges.

Some analysts also say Binance could be selling XRP to keep its price from rising, though no confirmed evidence supports this claim. The theory suggests that exchanges could benefit by controlling supply and liquidity, but this remains speculative.

Coinbase’s sudden exit from the top holder list has fueled the discussion. Observers have noted that this trend may reflect reduced competition from U.S. platforms compared to their Asian counterparts. While Asian exchanges continue to increase their XRP holdings, U.S.-based firms are seeing declines.

There are also comparisons being drawn to Gemini, which recently launched an XRP cashback card. This helped the platform move ahead of Coinbase in app store rankings. Some view this as an example of how innovation in token use cases is affecting exchange positioning.

Industry Reactions and Shifts in Liquidity

Upbit, Binance, and Uphold now lead in XRP holdings, each managing billions in assets. Coinbase’s current 132.4 million XRP puts it well below its peers. This gap shows how quickly liquidity can shift between platforms as market conditions change.

Data tracking platforms show Coinbase’s wallet activity has slowed, with only 10 active wallets holding XRP. This is down from over 60 earlier in the year. Each of these wallets now averages about 16.5 million tokens, though outflows continue.

As trading volumes rise on other exchanges, some experts believe Coinbase may have trouble regaining its earlier position. The firm’s reduced participation in the XRP market is seen as part of a wider trend in the U.S. crypto sector.

Coinbase has not issued a statement addressing the XRP outflows or the manipulation claims. As questions grow around XRP market dynamics, all eyes remain on wallet movements and institutional trading behavior in the coming weeks.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: