Whales Cut Binance Deposits 96% as XRP ETF Inflows Surge

Woofun AI reports that XRP’s recovery trajectory is being reshaped by a divergence between whale accumulation strategies and institutional ETF demand, with Santiment data highlighting shifting on-chain behaviors. The asset currently trades near $1.14, having surrendered part of Tuesday’s advance, leaving the next stage of the recovery dependent on whether ETF demand and broader spot buying can absorb the remaining available supply.

Structurally, the distribution of holdings has skewed heavily toward larger entities. Wallets containing between 100,000 and 100 million XRP expanded their balances by 2.8% over the past five weeks, signaling strong conviction among major holders. Conversely, micro-holders with less than 0.01 XRP reduced their positions by 5.2% during the same period, indicating a transfer of ownership from retail to institutional-grade wallets.

This accumulation pattern is mirrored by a dramatic reduction in exchange inflows. Whale deposits to Binance collapsed 96%, dropping from a previous peak of 583 million XRP to just 25.3 million. The value of these inflows fell from roughly $1.36 billion to approximately $23 million. Per Woofun AI, the 90-day average value of whale inflows to Binance has declined to about $69 million from $460 million in January 2025, marking the lowest daily reading since that month.

On the institutional front, spot XRP ETFs have generated significant capital inflows. Four funds have recorded cumulative net inflows of $1.49 billion since their launch, with total assets under management rising to roughly $1.06 billion. ETF subscriptions can require fund providers and their counterparties to source additional XRP exposure as new shares are created. Continued inflows therefore add a buyer to a market where one source of potential selling pressure has been receding.

The critical variable for the next phase of recovery is whether ETF-driven demand can absorb available supply at higher price levels. With whale deposits at multi-month lows, the market relies on institutional absorption to break through resistance. Whether this dynamic can propel XRP beyond the range established since June remains the definitive test for sustained upside.