- Coinbase XRP holdings dropped from 970M to 99M, marking an 89.79% decline and wallet consolidation.
- Growing treasury adoption and pending ETF approvals increase institutional demand for Ripple’s XRP.
- Analysts see XRP rallying toward $5, with $3.01 and $2.85 as key support levels to watch.
Ripple’s native cryptocurrency XRP is showing signs of a potential supply shock as Coinbase’s holdings dropped sharply in recent months. According to analysts, this change, coupled with increasing institutional demand, may open the path to a powerful rally.
On-chain data from XRPWallets shows that Coinbase’s visible XRP reserves fell nearly 90% in just three months. In early June 2025, the exchange managed around 970 million XRP across 52 cold wallets. By mid-September, the figure had declined to just 99 million XRP held across 6 wallets.
The reduction reflects an 89.79% drop and coincides with the consolidation of wallets, suggesting major restructuring in Coinbase’s XRP management. The sudden supply decrease has raised questions about whether withdrawals, transfers, or treasury accumulation contributed to the decline.
Rising Institutional Demand and ETF Developments
Despite XRP’s large total supply of 100 billion tokens, institutional demand appears to be driving expectations of a supply crunch. Eight companies, including Trident Digital Tech Holdings, VivoPower International, and Wedbush International, have adopted XRP-based treasury strategies, each holding over $100 million.
In addition, 11 spot XRP ETF applications remain under SEC review. Applicants include major firms such as Grayscale, Fidelity, VanEck, Franklin Templeton, and ARK Invest. Meanwhile, the Rex-Osprey XRP ETF is set to go live this week under the ’40 Act structure, potentially adding further demand pressure.
Price Outlook and Market Activity
Beyond corporate adoption, XRP continues to see utility growth in cross-border payments, tokenized asset settlement, and decentralized finance applications. This increasing use case adds to the narrative of reduced available supply.
Market data shows XRP holding above $3.0 support with daily trading volumes reaching $5.7 billion, a 12.47% increase. Open interest stands strong at $8.57 billion, highlighting steady trader participation. According to analyst Dark Defender, XRP has started breaking weekly resistance. His Elliott Wave projections place near-term targets at $4.39 and $5.85, while support sits at $3.01 and $2.85.
