CryptoQuant's Binance scarcity index for XRP has fallen to its lowest reading since January 2025, signaling a glut of tokens available on the exchange. The drop comes even as Binance's overall XRP reserves remain on an 18-month downtrend, and as XRP trades far below its 2025 peak.
The Binance scarcity index for XRP has dropped to its lowest level since January 2025, according to CryptoQuant. The metric signals that XRP is more readily available for trading on the exchange than it has been in over 18 months. The token already trades between $1.10 and $1.13, well below its 2025 peak above $3, so a jump in supply on the largest exchange by volume tends to unsettle bulls.
What the scarcity index tracks
The scarcity index measures how much XRP sits on Binance relative to historical norms. A high reading means balances are thin compared to average, suggesting holders are moving tokens into cold storage or other venues. A low reading means the opposite: a glut of XRP available for immediate sale.
A volatile year for the metric
The index has swung sharply through 2026. It climbed to roughly 0.75 to 0.80 between late April and May, a range that has historically aligned with accumulation behavior. Then came a reversal: by late June, the index had cratered to about 0.34, meaning supply had flooded back onto Binance.
A brief recovery pushed the metric back to approximately 0.77 in early July, but that bounce proved short-lived. The latest reading marks another steep decline to the weakest point since the start of 2025.
Reserves still down over the long run
Even so, Binance's total XRP reserves remain on a longer-term downtrend. Holdings dropped roughly 20% from November 2024, falling to approximately 2.6 billion XRP by mid-2026. The current uptick in available supply is therefore a short-term reversal within that broader decline, and even a moderate inflow can register as a dramatic shift against a shrinking baseline.
XRP's price has followed a similar pattern of erosion. After peaking above $3 during 2025's rally, the token has shed roughly two-thirds of its value, settling into a range around $1.10 to $1.13 in recent weeks.
High scarcity readings have tended to coincide with accumulation phases; the current low reading suggests the opposite dynamic may be at play.
Source: Crypto Briefing
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