- Coinbase’s ADA holdings increased by 462% to 9.56 million tokens, signaling growing demand for wrapped ADA on the Base network.
- The exchange’s XRP reserves plunged from 970 million to 16.39 million, reflecting a 98% decline within a few months.
- Analysts link the rise in ADA reserves to increasing institutional interest and reduced market activity surrounding XRP.
Coinbase’s Cardano (ADA) holdings have seen a sharp increase in recent months, while its XRP reserves have declined significantly. Data from Coinbase’s Proof-of-Reserves shows the exchange now holds around 9.56 million ADA, marking a notable 462% increase since June.
The surge in ADA holdings aligns with the growth of Coinbase Wrapped ADA (cbADA) on the Base network. The total supply of cbADA currently stands at approximately 9.53 million, reflecting the expansion from an initial 1.7 million ADA at launch. The increase suggests a steady rise in user demand for wrapped Cardano assets on Coinbase’s platform.
XRP Reserves Drop by Nearly 98%
In contrast, Coinbase’s XRP reserves have dropped sharply over the same period. The exchange, which once ranked among the top ten holders of XRP, saw its reserves fall from about 970 million tokens to roughly 16.39 million. The wrapped version, cbXRP, mirrors this figure at 16.38 million tokens, indicating the depletion of XRP reserves on the platform.
Cardano DRep Dori highlighted the sharp contrast between ADA and XRP activity on Coinbase. He emphasized that the 462% increase in ADA holdings demonstrates growing institutional interest and user adoption of the asset. Meanwhile, the substantial reduction in XRP reserves may indicate a slowdown in institutional engagement or a decrease in demand for Coinbase’s wrapped XRP product.
Market Interprets the Decline Differently
The XRP community has been divided over the decline in Coinbase’s holdings. Some members suspect the reduction could influence market prices, while others see it as a bullish signal, suggesting reduced selling pressure. Despite differing views, the data underscores a significant shift in the composition of Coinbase’s reserves, with ADA emerging as a growing focus within the exchange’s ecosystem.
