- An analysis indicates that the growing supply of tradable XRP on Binance might intensify selling pressure in the future.
- Data from CryptoQuant revealed that Binance’s XRP scarcity index dropped to -0.94, marking the lowest value since January 2025.
- The rise in tradable XRP supply may contribute to heightened selling pressure, though this trend could also be due to adjustments in market-maker liquidity.
Period Trends Overview
A rise in the tradable XRP supply on Binance, a prominent cryptocurrency exchange, is forecasted to exert additional selling pressure in the months ahead, according to recent analysis.
On September 30, BeInCrypto reported that Binance’s XRP scarcity index recently fell to -0.94, the lowest reading seen since January 2025, based on data from CryptoQuant.
This scarcity index evaluates the availability of a cryptocurrency’s tradable supply on Binance compared to historical levels. A higher score denotes a lower immediate availability of XRP for trading.
The XRP scarcity index peaked at 0.77 in July, its highest figure in nearly two years, before plummeting to -0.94 just a few months later.
According to BeInCrypto, Binance’s overall XRP reserves have decreased by roughly 20% since November 2024. However, the current supply appears to be more accessible for trading rather than being held in cold wallets. This suggests that the shift indicates how the existing supply is actively utilized in the market rather than just a reduction in total holdings.
Nevertheless, the extent to which the increase in tradable supply might lead to actual selling remains uncertain. Higher liquidity on the exchange may amplify future selling pressure, although this shift could also arise from standard liquidity provisions by market makers.