[Digital Today reporter Yoonseo Lee] Binance’s XRP holdings fell to their lowest level since December 2022.

Blockchain media outlet U.Today reported on Oct. 31 that XRP has seen supplies on major exchanges drop quickly, even as market volatility and selling pressure persisted in recent weeks.

CryptoQuant on-chain data showed Binance’s XRP reserves stood at 2.47 billion tokens as of Oct. 30. That was a sharp drop from 2.69 billion recorded on Oct. 28, down about 8.18 percent in two days.

The change could be interpreted as room to view investors as accumulating quickly. A decline in exchange holdings does not immediately mean prices will rise, but if demand holds it could lower short-term selling pressure, which could be taken as a favorable signal for XRP supply and demand.

The trend was not limited to Binance. Bybit’s XRP holdings also fell over the same period, to 286 million from 306 million. Bithumb also fell by 10 million, to 1.837 billion from 1.847 billion. The declines were smaller than Binance’s, but the common pattern was balances falling simultaneously across several major exchanges.

Still, a fall in exchange balances cannot be definitively labeled as accumulation. XRP continues to show high volatility despite the contraction in exchange supply. This was cited as a factor behind why the price did not react immediately even as holdings declined.

Broader market weakness is also a variable. The cryptocurrency market is facing strong selling pressure due to volatility that has continued for several weeks. XRP, too, has not avoided the impact of the market’s decline in price terms. Even so, with more tokens moving off exchanges, attention is expected to focus on whether the market is placing more weight on holding than on short-term selling.

Therefore, in the XRP market it is necessary to watch whether changes in supply and demand appear before price moves. In particular, it remains a next variable whether the decline in balances at major exchanges including Binance will be temporary or lead to a broader contraction in supply.