- Binance XRP Scarcity Index has climbed to 0.77, the highest level since mid-2024.
- The exchange experienced 7.38 million XRP inflows and 7.27 million XRP outflows.
- XRP Ledger transactions are at 1.3 million per day, 29% below the 3‑month average.
The amount of XRP readily available for sale on Binance has fallen to its lowest level since mid-2024, pushing the exchange’s Scarcity Index to its highest reading in roughly one year at 0.77.
In the past, a higher reading has meant fewer coins on the exchange compared to typical demand, so if buyers step in, it could have a larger impact on the price since there’s less supply ready to sell. Worth noting is that the Scarcity Index doesn’t mean that XRP itself is becoming scarce, just that the liquid supply on exchanges is tightening.
CryptoQuant reports that the Scarcity Index was already climbing weeks before XRP’s bounce, meaning the limiting supply wasn’t just a result of the price rally.
Binance’s Inflows, Outflows and Open Interest
Interestingly, although Binance experienced 7.38 million XRP inflows and 7.27 million XRP outflows, the flows were almost perfectly balanced. Rather than signaling a wave of selling, CryptoQuant reports that the scenario looks more like institutional settlements or market makers adjusting their inventories.
The report also noted that Binance Open Interest recovered from approximately 405 million XRP to 419 million XRP, a sign that derivatives trading picked up alongside spot demand.
One of the more important observations from CryptoQuant is that the rally wasn’t primarily driven by excessive leverage, since estimated leverage stayed at about 0.158, which is below the average of the past six months. That suggests less speculative futures trading and more actual spot buying.
Related: XRP Ledger Nears 1 Million AI Transactions as XRP Eyes Key Technical Level
XRP Ledger Activity Remains Quiet
Despite improving exchange metrics, network activity hasn’t kept up with the price. XRP Ledger transactions are at about 1.3 million per day, roughly 29% below the three‑month average.
If on‑chain activity picked up, it would be a much better sign that the recovery is driven by real network demand, as opposed to investors repositioning.
Crypto analysts such as CW noted that the price is being driven more by actual buying on the spot market than by leveraged futures trading.
At the moment, XRP is trading at $1.11, which is a 7% increase in the last 7 days.
Related: Ripple Wins Full MiCA Approval Across 30 EEA Markets
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