Coinbase’s Ripple (XRP) reserves have been drastically plummeting since the start of this year’s summer. Starting off with over 60 cold & hot crypto wallets carrying different amounts of XRP coins, the blockchain register now shows just 10 cold storage Coinbase wallets holding XRP balances above zero.
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What could have triggered this shift? Notably, the demand for Ripple’s XRP on Coinbase has extensively plunged on Perpetuals markets, ever since the Chicago Mercantile Exchange (CME) introduced the OG altcoin on traditional leveraged markets.
Now, with just 10 cold wallets remaining at 16.5 million XRP coins each, XRP Army members expect the scarcity to reflect on the cross-border altcoin’s price. However, it’s worth to say that Coinbase is defying the broader trend, as most other major exchanges are topping up on XRP.
Coinbase Can’t Stay Ahead XRP Competition?
Judging from the Derivatives markets data, Bitget, Binance, Bybit & CME all garner over $1 billion in daily XRP trades each, while Coinbase’s both trading volume & Open Interest (OI) didn’t reach $50 million, according to the real-time data from CoinGlass.
This could have pushed Coinbase to reduce XRP holdings, as the largest American exchange hardly competes in XRP trading volumes with popular major competitors. For one, Gemini’s platform has recently introduced an XRP-powered card with 4% cashback, stealing the show for American customers.
All in all, Coinbase’s XRP holdings could have been sold off at the cycle peak of $3.65, as well as moved to on-chain liquidity environments, which is key in maintaining high trading volumes. However, this might as well mean a huge demand of self-custodial XRP holdings for top crypto whales, including partnering institutions.
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Coinbase reduced its XRP holdings by ~83%, from ~970 million XRP across 60 cold wallets in June 2025 to ~165 million in 10 wallets by September 2025, per XRPWallets data. Each remaining wallet holds ~16.5 million XRP.
The reduction likely ties to institutional outflows, possibly via Coinbase’s partnership with BlackRock’s Aladdin platform, redirecting XRP to liquidity corridors, ETFs, or trust structures. Some speculate routine wallet consolidation.
XRP trades at ~$2.78, down 1% weekly but up 60% monthly. Lower exchange reserves may reduce selling pressure, potentially stabilizing or boosting prices, though volatility persists with $0.42 resistance and ETF hopes.
No, Coinbase continues to support XRP trading and custody. The reserve drop reflects strategic reallocation, not a full exit, possibly aligning with institutional demand or Ripple’s On-Demand Liquidity network.
Reduced exchange holdings could signal tighter supply, supporting price growth if demand rises. However, investors should monitor BlackRock’s moves, ETF developments, and Ripple’s escrow releases for market clarity.
