XRP balance on binance hits one-year low: What are the causes and impacts?

November marked the launch of U.S. XRP ETFs. This catalyst significantly boosted market demand for XRP. It also played a crucial role in helping XRP resist selling pressure driven by the overall negative market sentiment.

This shift left several notable on-chain signals. Analysts interpret these indicators as a positive sign for XRP to maintain its upward momentum.

How did ETF demand drive XRP accumulation on exchanges in November?

On-chain data from CryptoQuant, as of November 27, 2025, indicated that the XRP balance held on Binance had dropped to a 12-month low of 2.71 billion XRP.

A closer look at the chart indicated that Binance’s XRP reserves began declining after November 14. Approximately 100 million XRP was withdrawn from the exchange. This phase aligned precisely with the official launch of spot XRP ETFs in the United States.

XRP Exchange Reserve - Binance. Source: CryptoQuant.

SoSoValue data also showed that from November 14 onward, four XRP ETFs — Canary, Bitwise, Grayscale, and Franklin — recorded positive net inflows for nine consecutive days. As a result, the total assets held by these ETFs exceeded $670 million.

XRP ETF Daily Total Net Inflow. Source: SoSoValue

Buying pressure is expected to strengthen further in the coming days. Analysts anticipate that the 21Shares XRP ETF will soon be listed.

CryptoQuant analyst Darfost noted in his latest analysis that the sharp decline in XRP reserves on Binance, following the launch of a spot ETF, indicates that more XRP is being transferred into the hands of long-term holders.

“Fewer tokens available on trading platforms, combined with growing institutional demand, create a potentially powerful setup. If this trend continues, XRP could move into a more structured phase with an expanding institutional interest.” Darfost explained.

However, analyst Vincent Van Code provided a more in-depth explanation of the relationship between XRP ETFs and overall market demand.

He argued that ETF purchases from open markets do not always immediately push prices up. ETF demand must absorb the volume of XRP that Ripple unlocks from its escrow supply.

“Don't forget ETF managers cannot buy XRP directly from Ripple or from escrow due to court injunction. They must buy from the open market. This means price may not rise sharply at first, as Ripple sells its monthly escrow while ETFs absorb supply at a similar pace.” Vincent explained.

Recent analysis from BeInCrypto emphasized the importance of the 2 USD price level. Holding above this zone could signal a foundation for further upside movement in the days ahead.market sentiment.