XRP’s tradable supply on Binance tightened as a scarcity gauge reached its highest reading since 2022, according to a new analysis. Separate reserve data showed rising exchange holdings, highlighting the distinction between trading availability and total balances.
Scarcity Gauge Reaches Highest Level Since 2022
The XRP Binance Scarcity Index reached approximately 2.1, its highest level since 2022, Cryptoquant contributor Arab Chain shared in a Nov. 5 analysis. The gauge measures relative XRP availability for trading on Binance, with higher readings indicating greater scarcity. Its latest level followed negative readings throughout September and October and marked its highest point since 2022.
Earlier fluctuations included sharp declines during 2023 and 2024, followed by improvements through parts of 2025 and 2026. The analyst stated:
“This development points to a decline in the amount of XRP available for trading on Binance, reflecting a relative reduction in circulating exchange supply and an increase in scarcity.”
Price implications depended on demand, buying activity, and liquidity movements, the analysis explained. A sustained reduction in available tokens could influence the exchange’s supply-and-demand balance if buying strengthened. The analyst added: “If this trend continues, it could limit the amount of XRP available to traders on the platform.”
Binance Reserves Rose Alongside the Scarcity Signal
Cryptoquant contributor Amr Taha placed Binance’s XRP reserves at 2.63 billion on Nov. 5, up from 2.35 billion on Nov. 3. The 280 million XRP increase measured total exchange holdings, a separate metric from the scarcity index.
Trading conditions also depend on order-book depth and spreads. Depth measures the amount of buy and sell orders available at different prices, showing how much trading a market can absorb. A shallow order book can experience sharp price movements when a large order arrives.
More broadly, market liquidity reflects how easily assets can be exchanged without substantial price changes. Orders close to the current price help traders execute larger transactions with less disruption. Those conditions provide a practical measure of trading availability alongside exchange balance data.
Reserve Trends and Large-Holder Activity Add Context
Historical reserve data captured a longer period: Cryptoquant contributor Darkfost’s Sept. 1 assessment put Binance’s monthly average XRP reserves near 2.6 billion, versus 3.1 billion in November 2025. This roughly 500 million XRP decrease accumulated across that interval. Using a monthly average smoothed shorter-term fluctuations.
Large-holder transfers offered a different perspective, with Arab Chain tracking 1.38 billion XRP in whale withdrawals over 30 days in an Oct. 7 analysis. Whale withdrawals are transfers off an exchange by large holders. The gross total excluded deposits, so it differed from the net change in reserves.
Beyond exchange flows, Santiment counted 2,147 wallets holding at least 1 million XRP on Nov. 3, the year’s highest tally. That measure tracked addresses crossing a balance threshold, distinct from purchase volume. The category expanded by 28 wallets over 10 days, including 18 during the final three.
