Advertise
XRP Scarcity on Binance Reaches Highest Level Since 2022 – Here is What It Means
XRP supply on Binance has dropped to a new multi-year low.
Renewed demand for XRP on Binance has helped reduce selling pressure.
Ali Martinez believe the token’s price is almost kickstarting its next bull leg.
Even though XRP has extended its October selloff into November 2026, on-chain data analysis reveals a strong demand from investors.
The XRX Binance Scarcity Index, a tool that measures liquid supply constraints on the largest cryptocurrency exchange by daily traded volume, has surged to 2.1, its highest level since 2022.
XRP Binance Scarcity Index. Source: CryptoQuant
After remaining negative throughout September and October 2026, the metric recorded a sharp multi-day surge into significantly positive territory, marking one of its strongest upward movements in four years.
As a result, the XRP Ledger: Exchange Reserves on Binance, 30-day Simple Moving Average (SMA), has crashed to a new multi-year low. At the time of writing, the XRP reserves on Binance (SMA 30) hovered at around 2,602,104,093 tokens, down from 3,293,564,370 tokens 12 months ago, as per data from CryptoQuant.
XRP reserve on Binance (SMA 30). Source: CryptoQuant
Historically, such a significant decline in tradeable tokens on Binance has preceded a renewed strong uptrend.
XRP price performance and prediction
Although XRP supply on Binance has been in free fall, the token’s price has capitulated by more than 18% over the past month, trading at approximately $1.23 at the time of reporting. Consequently, the altcoin had a market capitalization of about $78.1 billion.
Token’s performance on Thursday. Source: CoinMarketCap
At the time of publication, XRP’s 24-hour average trading volume had plunged by more than 19% to $2.43 billion.
Despite the recent selloff, crypto analyst Ali Martinez expects a potential bull rally towards $2.1 in the near future, especially if the resistance level at $1.6 is broken.
The rising scarcity of XRP on Binance is well positioned to catalyze bullish sentiment.
Was this writing helpful?
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
