Coinbase's XRP Stock Decreases by 40% in Rapid Wallet Reorganization
In a recent report by XRPWallets, Coinbase, one of the largest U.S. crypto exchanges, has seen a significant decrease in its XRP holdings. The change, amounting to a 40% drop, is primarily due to a strategic wallet rotation, indicating an operational reorganization rather than a market withdrawal.
This wallet rotation, involving mainly Coinbase’s cold wallets, reflects a strategic rebalancing of liquidity and infrastructure rather than an exit from XRP. Large consolidated outbound XRP flows are being tracked in real time by on-chain watchers, and it appears that these movements are likely linked to Ripple’s On-Demand Liquidity (ODL) partners such as Bitstamp and BitGo.
The wallet rotation did not have an immediate impact on XRP’s price but has coincided with increased trading volumes. No major exchange sales or XRP dumping are evident, and Coinbase’s movements appear focused specifically on XRP without similar changes in Bitcoin, Ethereum, or other altcoins in their holdings.
Speculation suggests that such movements might support institutional partnerships or new custodial services, but Coinbase leadership has not publicly commented on this development. However, it is worth noting that Gemini has recently added XRP and SHIB as collateral for derivatives trading.
In summary, the reason for the 40% XRP holdings decrease is Coinbase’s operational wallet reshuffling and liquidity rebalancing, not a direct sale or market exit. As of this week, only 35 of Coinbase's initial 52 cold wallets remain funded with XRP.
[1] Source: XRPWallets report, date unspecified.
- Despite the 40% decrease in XRP holdings at Coinbase, no major exchange sales or XRP dumping are evident, suggesting that the wallet rotation might support institutional partnerships or new custodial services.
- The wallet rotation at Coinbase, mainly affecting their cold wallets, is thought to be a strategic rebalancing of liquidity and infrastructure rather than an exit from XRP, with large consolidated outbound XRP flows being linked to Ripple’s On-Demand Liquidity (ODL) partners.
- Interestingly, while Coinbase is reshuffling its XRP holdings, no similar changes have been observed in their Bitcoin, Ethereum, or other altcoin holdings, hinting at a crypto trading activity that remains focused specifically on XRP.
