Key Highlights
- According to CryptoQuant, XRP exchange holdings soared to over 11.81 billion tokens, reaching the 99th percentile over the past year and increasing potential short-term selling pressure.
- US spot XRP ETFs posted their first weekly net outflow in 13 weeks, ending a long inflow streak while cumulative inflows remain near $1.8 billion.
- XRP Ledger payment volume dropped sharply from 72.3% to 119.5 million XRP.
XRP exchange reserves have climbed to approximately 11.81 billion tokens, placing them in the 99th percentile of the past 365 days, according to CryptoQuant. The rise increases the amount of readily available supply that could be sold, potentially adding short-term pressure while XRP trades around $1.30.
The build-up in exchange balances coincides with a modest reversal in institutional demand through U.S. spot XRP exchange-traded funds and a sharp decline in on-chain payment activity on the XRP ledger.
Exchange Reserves Reach Elevated Levels
On-chain data shows that XRP held across exchanges stood at around 11.81 billion on October 17. This level ranks among the highest readings of the past year, even as leverage in the derivatives market has declined. Binance open interest in the cryptocurrency fell roughly 15.8% from early October levels, and long liquidations clustered earlier in the month as price moved lower from around $1.52 toward the $1.29 area.
The increase in reserves appears concentrated outside Binance in some measurements, though net flows onto major platforms have been positive in recent sessions. Higher exchange balances generally hint at greater potential selling liquidity. At the same time, structural demand factors remain in place, including roughly $.18 billion in cumulative net inflows into spot XRP ETFs and corporate holdings such as Evernorth’s reported position of about 473 million tokens.
At the time of writing this, the price of the XRP token is trading at around $1.32, within a recent range of roughly $.128 to $1.35 after earlier declines.
XRP ETFs End 13-Week Inflow Streak
On October 16, U.S. spot XRP ETFs recorded their first weekly net outflow in three months during the period ending. SoSoValue data shows approximately $1.84 million in net withdrawals, ending a 13-week streak of positive inflows that began in July.
The reversal was limited in scale relative to the products’ overall size. Cumulative net inflows still stood near $1.8 billion. Daily inflows were largely flat early in the week, turned modestly positive mid-week, and then moved negative, with a larger redemption on Friday linked in part to Canary Capital’s product. The end of the streak stands out more for breaking the consistent inflow pattern than for the absolute size of the outflow.
On-Chain Payments Flash Caution
Payment volume on the XRP Ledger dropped sharply. On October 17, the volume of tokens sent between accounts fell 72.3% to 118.5 million XRP, well below the 30-day average of about 629.3 million XRP, according to XRPSCAN data.
Payment volume measures value transferred on the ledger rather than simple transaction counts. Large or irregular transactions can create temporary spikes, so single-day declines do not always signal lasting weakness. However, the drop arrives alongside softer price action and the ETF flow reversal, which adds a cautionary signal on network activity.
XRP Ledger Advances Lending Code Fixes
In a separate development, the XRP Ledger is progressing a package of bug fixes that includes patches related to its proposed lending system. The fixCleanup3_4_0 amendment had secured the required 29 validator votes and was on track for activation around October 23. The changes address issues in the lending code and related vault and loan-default rules.
The broader Lending Protocol and vault amendments, which would enable on-chain collateralized lending using pooled funds, remain short of the votes needed for activation. As of the latest counts, they stood at 19 and 21 votes, respectively, well below the 29-vote threshold. The patches therefore improve the codebase ahead of any potential future enablement of the lending features.
Ripple has positioned the lending protocol as a tool for banks and payment firms, relying on off-chain underwriting while keeping key operations on the ledger. Activation of the full system would still require further validator support and a separate countdown period.
Last week, Ripple CEO Brad Garlinghouse unveiled his plan for the next phase for the XRP Ledger, focusing on institutional lending and yield generation tools.
