XRP’s climb above $1.16 this week aligns with a shifting supply dynamic, as large holders reduce exchange deposits while US‑listed ETFs keep drawing new capital.
This decline in exchange‑held tokens follows several weeks of consolidation near the $1 mark, where subdued prices and thin spot demand prevented earlier rallies from gaining traction.
While this shift alleviates some selling pressure, a clear breakout has not yet materialized. At press time, XRP had relinquished part of Tuesday’s gain and hovered around $1.14, meaning the next phase of recovery hinges on whether ETF inflows and broader spot interest can soak up the remaining supply.
Whale Accumulation Grows as Exchange Deposits Drop
The token’s biggest holders are increasing their stakes while capturing a larger portion of coins exiting exchanges, signaling heightened confidence among whales as XRP seeks to rebound from its recent slump.
Santiment data reveal that wallets holding between 100,000 and 100 million XRP grew their combined balances by 2.8% over the past five weeks, while addresses with fewer than 0.01 XRP trimmed their holdings by 5.2% in the same timeframe.
This accumulation parallels a notable shift in how large holders engage with centralized exchanges.
According to CryptoQuant, whales were responsible for a record 77.8% of XRP outflows from centralized exchanges on July 22, up from 63% on May 6. Retail participants’ share dropped to 22% from 36%, expanding the disparity between the two groups to almost 56%.
A comparable trend appears on Binance, where large holders accounted for 71% of XRP withdrawals on July 22 versus 67% in early May, while retail’s portion fell to 28.7% from 32%.
The elevated whale proportion across the wider centralized‑exchange landscape indicates the trend extends beyond Binance alone.
Although the data do not specify the ultimate destination of the withdrawn XRP, the rise in large‑wallet balances offers independent confirmation that whales have been accumulating tokens over the same interval.
Concurrently, these holders are depositing far less XRP onto Binance, curbing the volume available for trading on the platform.
Whale deposits to Binance have plummeted 96%, falling from a peak of 583 million XRP to just 25.3 million XRP. The earlier inflow corresponded to roughly $1.36 billion, whereas the latest figure amounts to about $23 million.
The decline is not isolated to one session; the 90‑day average value of whale inflows to Binance has slipped to roughly $69 million, down from $460 million in January 2025, with the most recent daily figure marking the lowest point since then.
Collectively, the data indicate that whales are expanding their XRP holdings, claiming a larger share of exchange outflows, while depositing significantly less onto Binance.
ETF Inflows Provide Demand Amid Declining Whale Deposits
The diminishing whale deposits are gaining relevance as XRP ETFs continue to channel fresh capital into the market.
US‑listed spot XRP funds have garnered roughly $12 million in July, positioning them for a fourth straight month of net inflows. The products attracted $81.59 million in April, $131.94 million in May and $59.46 million in June, pushing the four‑month total to approximately $285 million.
Cumulative net inflows into the four funds now total about $1.49 billion since inception, with aggregate assets climbing to approximately $1.06 billion.
Although these monthly figures are modest beside the flows typical of Bitcoin funds, their steady persistence supplies XRP with a reliable demand source while large holders accumulate the token and curb Binance deposits.
Creating new ETF shares often obliges providers and their counterparties to procure extra XRP exposure, meaning ongoing inflows introduce additional buying pressure in a market where one source of selling pressure is waning.
This dynamic is growing increasingly relevant to XRP’s recovery. While reduced whale deposits can limit supply reaching Binance, a lasting price climb still hinges on buyers stepping in to absorb tokens offered at higher levels.
ETF investors are contributing a portion of that demand. Whether their purchases are sufficient to propel XRP above the range that has persisted since June will be the next key test.
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