XRP whales are depositing their assets on Binance in a huge pattern, 0.2 billion to 6.9 billion tokens per day. The exchange is currently the industry leader in XRP deposits.
Some analysts have hypothesized that growing optimism about XRP ETFs is helping fuel these trends. Even if full approval may be months away, progress still has downstream impacts on the XRP market.
XRP Whales Head to Binance
The crypto community is very optimistic about an XRP ETF, which has been fueling some bullish behavior. New data suggests a useful barometer to measure market dynamics: XRP whale activity on Binance.
According to analysis from CryptoQuant, Binance is currently the largest recipient of heightened XRP whale activity. These traders aren’t just betting on the market but moving it in a consistent pattern.
And yet, the XRP deposits continue, even though it can cause the price to sink:
“Whale XRP deposits into Binance tend to indicate inflection points for the price of XRP. For example, the price of XRP bottomed out between Apr 7-9 as inflows of XRP spiked from 1.2 to 6.9 Billion. Likewise, the price XRP found a local top early in March as whale deposits increased from 0.7 to 2.9 Billion XRP,” claimed Julio Moreno, Head of Research at CryptoQuant.
In early March, XRP whales reached unprecedented activity, possibly indicating an upcoming distribution phase. Earlier today, newer data showed that these high-volume traders purchased more than 900 million XRP tokens in April.
XRP exchange trading volume is spiking all around.
This heightened activity can have a deleterious effect on the price of XRP, but that may not matter in the long run. These traders can actually move the XRP market, and that knowledge is part of their calculations.
Even though the XRP ETF recently saw some setbacks, the bigger picture still looks optimistic.
Even if the ETF does receive approval, there are still concerns that it might have limited market appeal. After all, Bitcoin ETFs currently occupy around 90% of that market sector.
Nonetheless, these whales show a significant level of optimistic sentiment for XRP’s future.
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