Coinbase XRP reserves plummeted quite dramatically, all the way to a meager 132 million tokens stored in eight cold wallets. That is a dramatic fall from all-time highs, which were said to have peaked above 750 million XRP this year.
Blockchain data indicate that every one of the eight wallets had around 16.5 million XRP. The drop, when taken over the course of recent weeks, is directed at institution-level withdrawals, which may be the consequence of institution-level custody arrangements.
BlackRock Aladdin Link Fuels Speculation
The steep drop has been attributed by market observers to the growing integration of Coinbase with BlackRock-owned Aladdin platform. Coinbase Custody now has clients from Aladdin, allowing large institutions to purchase crypto assets like XRP directly.
Although Coinbase has yet to roll out any XRP-specific product through Aladdin, some of the missing XRP has actually been switched into private custody on the behalf of institutions, according to analysts, who have shown that this can account for holdings dropping without having to be of material impact to the market.
XRP Community Divided on Plans
The XRP community remains divided. Some argue that Coinbase is selling off its XRP and, in the process, bringing prices down. They point to the precipitous decline in ownership (hundreds of millions fewer to just 132 million) as a possible sign of collusive market practices.
Others do not share their views. Analysts believe that institutions are moving XRP into long-term storage due to increasing demand. The bulls believe that less tokens in exchanges will reduce sell pressure, which can be good for the price in the long term.
Coinbase Denies Manipulation Claims
Coinbase’s lawyer Bill Morgan has dismissed allegations of price manipulation. Morgan explained that the coin price fluctuations have always had a similar trend irrespective of the trading volumes on Coinbase. Morgan argued that even during the asset’s delisting from the exchange, its price followed typical market trends.
XRP Price Continues to Rise Despite Outflows
Despite this issue, the XRP price has been relatively strong. Analysts note similarities with previous bullish phases, where large-scale wallet movements preceded price surges. Technically, XRP remains above key support levels, with resistance projected around $3.10.
Falling exchange balance may be evidence of a mature marketplace where assets remain off-exchange in secure long-term storage. Whether this is a bullish or bearish indicator depends on future on-chain activity and institutional engagement.
