TLDR
- XRP supply on Coinbase fell by 90%, from 970M to 99M in three months.
- Institutional adoption of XRP-based treasury strategies is increasing.
- 11 XRP ETF applications are pending SEC approval, boosting demand.
- XRP price targets are projected to reach $4.39 and $5.85 by analysts.
The XRP supply on Coinbase has seen a drastic drop in recent months, shrinking by nearly 90% from 970 million tokens across 52 wallets to just 99 million. This sharp decline has raised questions about the reasons behind this shift and what it could mean for XRP’s future. Analysts suggest that growing institutional demand and developments like the Ripple treasury and XRP ETF are contributing factors.
Coinbase’s XRP Holdings Decline Significantly
Recent data from XRPWallets has shown a remarkable reduction in Coinbase’s XRP reserves. In early June 2025, the exchange held nearly 970 million XRP tokens spread across 52 wallets. By mid-September 2025, this amount had dropped to just 99 million XRP across only six wallets. This represents a drop of 89.79% in Coinbase’s XRP cold storage holdings over the span of three months.
The significant decrease in holdings suggests a shift in how Coinbase is managing its XRP reserves. The consolidation from 52 wallets to just six could indicate a restructuring of the exchange’s internal systems, likely in response to the growing demand for XRP. This change could also point to a tighter control of the asset, with less supply available for retail traders on the platform.
Increased Institutional Demand for XRP
The reduction in Coinbase’s XRP supply is taking place alongside rising institutional interest in the cryptocurrency. Reports indicate that multiple companies have started to adopt XRP-based treasury strategies, with names like Trident Digital Tech Holdings, VivoPower International, and Wedbush International leading the charge. These companies have invested heavily in XRP, each holding over $100 million in the cryptocurrency.
This growing institutional adoption is seen as a key factor driving the demand for XRP. Analysts believe that as more corporations implement XRP into their treasury strategies, the overall supply will tighten further, potentially boosting the price of XRP. As corporate use of XRP increases, fewer tokens will be available for retail traders, which could create upward pressure on prices.
The Role of XRP ETFs in the Market
Another factor contributing to the reduction of XRP supply is the increasing interest in XRP Exchange-Traded Funds (ETFs). Currently, 11 applications for XRP ETFs are awaiting approval from the U.S. Securities and Exchange Commission (SEC). Major asset managers, including Bitwise, Grayscale, Fidelity, VanEck, and ARK Invest, are among those behind these ETF applications.
The approval of XRP ETFs would likely lead to greater institutional involvement, further reducing the available supply on exchanges like Coinbase. Additionally, the launch of the Rex-Osprey XRP ETF under the ’40 Act structure this week is expected to increase demand, with investors flocking to the product. This heightened institutional interest could play a critical role in XRP’s price movement in the near future.
XRP Price Outlook and Market Trends
Despite broader market volatility, XRP has shown resilience, holding steady above the $3.0 support level. The cryptocurrency has also seen an uptick in trading volume, which surged by 12.47% to $5.7 billion in recent days. XRP’s open interest remains strong at $8.57 billion, indicating sustained investor interest.
According to popular crypto analyst Dark Defender, XRP is breaking through key resistance levels, which may signal higher price targets ahead. Based on Elliott Wave analysis and Fibonacci projections, the analyst has set price targets for XRP at $4.39 and $5.85. These levels could be reached if XRP continues its upward momentum, bolstered by the tightening supply and strong demand from both institutional investors and retail traders.
As the supply of XRP continues to shrink, market participants are closely monitoring the developments surrounding the Ripple treasury, institutional adoption, and ETF approvals. These factors may play a pivotal role in shaping the future of XRP and its price trajectory in the coming months.
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