Coinbase XRP wallets saw on-chain consolidation break up over the summer: Coinbase’s identified cold-wallet cluster dropped by about 73% from June to late August, reducing institutional XRP held in the same addresses from roughly 970M XRP to a small fraction, signaling major redistribution of reserves.
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Coinbase’s cold-wallet cluster shrank ~73% between June and late August
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Approximately 970,000,000 XRP was previously mapped across 52 cold wallets; only a fraction remains consolidated
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The pattern was also observed at BitGo and Bitstamp, suggesting custody rebalancing or operational redistribution
Coinbase XRP wallets drop 73% in summer; track reserve changes and on-chain signals. Read the full analysis and next steps for traders.
By COINOTAG · Published: 2025-08-26 · Updated: 2025-08-26
What happened to Coinbase XRP wallets?
Coinbase XRP wallets that once held roughly 970,000,000 XRP across 52 mapped cold addresses were largely broken up between June and late August, leaving only a small fraction consolidated; on-chain analysis shows 73% of those labeled reserves were redistributed, moved, or diluted into sub-wallets.
How much XRP did Coinbase move and how was it split?
In June, the mapped cluster consisted of ten wallets with about 26,800,000 XRP each and 42 wallets holding roughly 16,800,000 XRP each, totaling ~970,000,000 XRP.
By late August, that consolidated structure had been largely dismantled: many large allocations were emptied, split into smaller operational accounts, or transferred off the labeled addresses, leaving only 16 of the original lower-tier wallets intact.
Why does a 73% reduction in Coinbase reserves matter?
Exchange reserves are a visible component of circulating supply on centralized venues. A 73% reduction in labeled cold-wallet holdings on Coinbase can:
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Signal less immediate sell-side supply: fewer coins in consolidated exchange custody can tighten available supply.
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Reflect custody rebalancing: large custodians often split legacy cold storage into operational wallets for security and client segregation.
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Indicate withdrawals or transfers: client redemptions or off-exchange custody moves will reduce exchange-held balances.
Was the same pattern seen at other custodians?
Yes. On-chain observers reported similar redistribution at BitGo and Bitstamp, where legacy cold storage also appears to have been broken into smaller operational accounts. The repeated pattern across custodians suggests coordinated custody operations rather than a single exchange anomaly.
Frequently Asked Questions
Did Coinbase sell 73% of its XRP?
No. The on-chain data shows redistribution and wallet decomposition rather than clear sell flows. Transfers between custodial addresses and client withdrawals can produce the same on-chain signature as a sale without necessarily being sell-side market pressure.
How can traders monitor exchange XRP reserves?
Traders can track labeled exchange addresses via on-chain explorers and public address mappings. Look for large transfers, wallet decomposition, and changes in exchange-held balances to assess potential supply shifts.
Could this cause an XRP supply squeeze on exchanges?
Possibly. If redistributed XRP remains off-exchange or is locked in long-term custody, available exchange liquidity shrinks. However, custody rebalancing and internal operational moves can create similar short-term signals without lasting supply reduction.
Key Takeaways
- Coinbase XRP wallets shrank ~73%: On-chain mapping shows a major reduction in consolidated Coinbase-held XRP through summer 2025.
- Redistribution not necessarily selling: Moves appear consistent with custody rebalancing, sub-wallet creation, or client withdrawals.
- Cross-custodian pattern: Similar behavior at BitGo and Bitstamp suggests industry-wide operational adjustments.
Conclusion
Coinbase XRP wallets that once held nearly 1 billion XRP in identified cold addresses were largely redistributed, shrinking labeled reserves by about 73% over the summer. Whether this is a genuine supply tightening or routine custody reorganization remains unclear, but on-chain monitoring of exchange balances remains essential for traders and analysts.
