Coinbase XRP reserves plunged ~90% from 970M to 99M in three months, signaling a potential XRP supply shock as wallet consolidation and institutional treasury adoption coincide with multiple spot XRP ETF applications under SEC review.
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Coinbase holdings fell 89.79%—970M to 99M XRP over three months.
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Institutional treasury adoption and pending spot XRP ETFs are increasing demand pressure.
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Analyst targets range to $5 with supports at $3.01 and $2.85; daily volume ~$5.7B.
Coinbase XRP reserves plunge 90% in three months — read causes, ETF implications, and price outlook. Full analysis and key takeaways on COINOTAG.
What caused Coinbase XRP reserves to plunge nearly 90% in three months?
Coinbase XRP reserves fell from roughly 970 million XRP across 52 cold wallets to about 99 million across 6 wallets, an 89.79% decline driven by wallet consolidation and large transfers. On-chain data indicates significant withdrawals or internal treasury moves rather than gradual retail outflows.
How did on-chain data and wallet consolidation reveal the change?
On-chain monitoring showed a rapid consolidation of Coinbase-controlled addresses between June and mid-September 2025. Visible reserves dropped as multiple cold wallets were emptied or merged into fewer addresses, revealing a sharp reduction in exchange-visible supply. This pattern suggests large coordinated transfers or internal treasury reallocation rather than typical user withdrawals.
How is institutional demand and ETF activity affecting XRP supply and outlook?
Institutional treasury adoption and spot ETF filings are tightening available supply and shaping market expectations. Several corporates, named in plain text here as Trident Digital Tech Holdings, VivoPower International, and Wedbush International, have disclosed XRP treasury allocations exceeding $100 million. Separately, 11 spot XRP ETF applications remain under SEC review, while the Rex‑Osprey XRP ETF is set to launch under a ’40 Act structure this week.
Combined, these developments increase potential buy-side demand. Institutional treasury use cases, including cross-border settlement and tokenized asset flows, reduce circulating supply and can intensify price moves if inflows outpace selling pressure.
What do market metrics show right now?
Market data highlights current strength: XRP is holding above the $3.0 support level with daily volume near $5.7 billion (a reported 12.47% increase) and open interest around $8.57 billion. Analyst Dark Defender’s Elliott Wave analysis targets $4.39 and $5.85 near-term, with supports at $3.01 and $2.85. These figures point to robust trader participation alongside reduced visible exchange reserves.
What is the likely price outlook for XRP if the supply contraction persists?
If reduced exchange-visible supply is sustained and ETF approvals or treasury adoption accelerate, price discovery could push XRP toward multi-dollar targets. Analysts project scenarios where institutional accumulation and ETF inflows create a supply–demand imbalance that supports a rally to $4–$6 ranges, contingent on macro liquidity and regulatory outcomes.
Frequently Asked Questions
How large was Coinbase’s XRP holding decline and over what period?
Coinbase’s visible XRP holdings reportedly fell from ~970 million across 52 cold wallets in early June 2025 to ~99 million across 6 wallets by mid‑September 2025, an approximate 89.79% decline in three months.
Are companies really using XRP for treasury reserves?
Yes. Corporates such as Trident Digital Tech Holdings, VivoPower International and Wedbush International have disclosed XRP treasury allocations exceeding $100 million, indicating growing corporate adoption without naming additional external sources here.
What immediate signals should traders watch?
Watch daily trading volume, open interest, and price action around supports at $3.01 and $2.85. A sustained increase in inflows or ETF-related demand coupled with low exchange-visible supply can drive sharp rallies.
Key Takeaways
- Major reserve decline: Coinbase visible XRP reserves dropped ~89.79% in three months, indicating significant transfers or consolidation.
- Institutional demand rising: Corporate treasury allocations and multiple spot ETF filings increase potential buy-side pressure.
- Price action to monitor: Key supports at $3.01 and $2.85; analyst targets extend toward $4–$6 if supply tightness continues.
Conclusion
This analysis shows Coinbase XRP reserves experienced a sharp decline that coincides with rising institutional treasury use and ongoing spot ETF activity. Together these signals create a credible path for tighter circulating supply and potential price appreciation. Monitor on-chain flows, ETF developments, and market metrics for confirmation and consider the risks of regulatory or macro shifts. For continuous coverage and updates, follow COINOTAG reporting and data summaries.
