Is XRP Signaling Accumulation? Binance Withdrawals Surge Amid Growing ETF Demand

The latest data on XRP indicates that buyers may be using recent price drops as an opportunity to accumulate the cryptocurrency. Insights from CryptoQuant suggest a notable increase in Binance withdrawal activity, while the demand for spot XRP ETFs remains robust despite the token's price decline.

Key Takeaways

XRP Accumulation: Recent spikes in Binance XRP withdrawals suggest that investors could be accumulating XRP tokens rather than selling them.
ETF Demand: Spot XRP ETFs have received approximately $1.4 billion in cumulative inflows since their launch, showing continued investor interest.
Market Conditions: Despite a challenging macroeconomic landscape and limited liquidity, altcoins, including XRP, are starting to exhibit resilience.
Institutional Involvement: Institutions such as Goldman Sachs and Millennium Management hold significant XRP positions, indicating growing institutional interest.

XRP Accumulation Signal? Binance Withdrawals Jump, ETF Demand Grows

Examining XRP Accumulation Signals

Data from both on-chain and fund flows are raising a pertinent question in the XRP market: Are buyers taking advantage of recent price dips to accumulate more of the asset? According to insights shared by CryptoQuant contributor Darkfost, there has been a marked increase in Binance withdrawal activities, coinciding with ongoing capital inflow into spot XRP ETFs, even as the cryptocurrency experiences price pullbacks.

Understanding the Current Market for XRP

Darkfost placed these movements in the context of the broader altcoin market, which appears selective rather than broadly increasing. He notes, “Despite the uncertainty that has negatively impacted the cryptocurrency market, some altcoins are starting to show early signs of recovery.” He highlights that Total3, the metric representing the market capitalization of altcoins excluding Ethereum, is currently stabilizing between $640 billion and $740 billion, reflecting a gain of nearly 11% since early February.

This perspective is critical because Darkfost's assessment of XRP isn't driven by a general altcoin revival. It’s rooted in capital concentration. He observed, “Even in a tough macroeconomic setting and limited market liquidity, some capital is still positioned in altcoins.” However, he emphasizes that with liquidity difficulties persisting and the number of tokens expanding, “selecting the right assets is becoming increasingly crucial.”

Notable XRP Withdrawals from Binance

Within this market context, XRP is gaining attention. A chart from CryptoQuant, which was tracking XRP Ledger withdrawal transactions from Binance, reveals several significant spikes in activity in recent weeks. One notable surge occurred on March 6, when over 14,000 transactions were recorded. Such bursts of activity occurred even as XRP's price faced downward pressure, a trend that traders often interpret as coins being taken off exchanges for long-term holding rather than being immediately sold.

While Darkfost was cautious about overemphasizing these signals, he stated that “currently, a few positive signs are emerging around XRP." He pointed out, “The recent spikes in withdrawal transactions indicate that some investors may be accumulating XRP and opting to move their tokens to private wallets instead of keeping them on the exchange.”

XRP exchange withdrawing transactions on Binance | Source: X @Darkfost_Coc

Ongoing ETF Demand and Institutional Interest

The second pivotal aspect of the current XRP narrative is ETF demand. Bloomberg ETF analyst James Seyffart highlighted that spot XRP products have performed relatively well, despite the substantial price retraction, accumulating around $1.4 billion in total inflows since their inception. A chart shared by Seyffart indicates that these inflows increased from roughly $150 million on November 13, 2025, to $1.44 billion by March 4, 2026, implying continued investment interest even amid difficult market conditions.

Seyffart stressed the limited information available regarding the buyers. He noted, “Who are these buyers/holders?” While most do not file 13Fs, some notable holders as of December 31, 2025, include Goldman Sachs Group with $153.8 million exposure (equal to 83.6 million XRP), and Millennium Management with $23.1 million (12.5 million XRP), along with other smaller positions from firms like Citadel Advisors and Jane Street.

Institutional XRP ETF holders | Source: X @JSeyff

The Current State of XRP

This combination of exchange withdrawals and ETF demand creates a compelling scenario for XRP. On one hand, recent withdrawal activities from exchanges suggest coins are moving to private wallets, indicating accumulation. On the other, there is consistent ETF absorption and evidence of increasing institutional investment through formal reporting channels.

At the time of writing, XRP is trading at $1.3768.

XRP price chart
XRP trades below the 200-week EMA, 1-week chart | Source: XRPUSDT on TradingView.com