Coinbase’s XRP reserves continue to shrink. According to XRP Liquidity, Coinbase has now fallen out of the top 10 exchanges by XRP holdings, after its reserves dropped by a staggering 83% in just two months.
Two months ago, Coinbase was the fifth-largest XRP holder among exchanges, with 780 million XRP. As of yesterday, that number has fallen to just 132.4 million XRP, surprising many in the XRP community.
Currently, the largest XRP holders among exchanges are:
Other exchanges holding significant amounts include Coincheck with 555 million, eToro with 472 million, Crypto.com with 380 million, Coinone with 295 million, and Kraken with 185 million.
Coinbase’s XRP reserves may be declining for a few reasons. XRP is being shifted into liquidity programs, investment products, and trust accounts, which makes less of it visible on the exchange. XRP may be moving from Coinbase’s wallets to institutions, who manage and hold it themselves. Also, Coinbase may have cut back on XRP holdings when the token reached its all-time high.
In response to Coinbase dropping out of the top 10 XRP holders, Attorney Bill Morgan quipped that the exchange might delist XRP again, but this time “by not holding any.”
Coinbase’s relationship with XRP has been marked by regulatory challenges.
In response to the U.S. SEC lawsuit against Ripple Labs, Coinbase had suspended XRP trading on January 19, 2021. Further, in January 2023, Coinbase had announced that it would delist XRP, along with Bitcoin Cash, Ethereum Classic, and Stellar from its wallet due to “low usage.”
After a federal court ruling that XRP sales on exchanges did not qualify as securities, Coinbase resumed XRP trading in July 2023.
While XRP reserves have dropped, Coinbase has not signaled any plans to remove the token from its platform.
In fact, just recently Coinbase launched 5x leverage perpetual futures for XRP, signaling renewed interest in the token. CEO Brian Armstrong also praised the move, calling it “great progress on U.S. perpetual futures.”
Recently, there was also speculation within the community about potential price manipulation by Coinbase. However, Morgan dismissed these claims and pointed out that XRP’s price has moved in much the same way even during the years Coinbase had delisted the asset.
So, despite the reduction in XRP holdings, and concerns within the community, Coinbase’s recent actions suggest a continued commitment to support the token.
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