The sharp decline in XRP cold wallets on Coinbase has stirred widespread debate in the crypto community. Within the past three months, the number of these wallets plummeted from 52 to just six, fueling speculation and varying interpretations about user behavior and exchange policy changes.

Tracking the XRP Wallet Contraction

On-chain analysts have observed a drastic shift in how XRP is stored on Coinbase. According to available blockchain data, the total number of cold storage wallets affiliated with XRP dropped by nearly 88%, falling from 52 separate wallets down to only 6. This contraction has raised eyebrows across the community, especially given Coinbase’s status as the largest U.S.-based cryptocurrency exchange.

Cold wallets are often considered secure methods for holding digital assets long-term. A major drop in the number of cold wallets may point to operational changes in how Coinbase manages XRP storage, or it could reflect a bigger customer-driven movement of XRP off the exchange.

Possible Drivers Behind the Wallet Reduction

Several factors could explain this significant drop. One possibility is a consolidation effort by Coinbase to streamline its wallet infrastructure—combining assets into fewer wallets to reduce overhead or improve fund management efficiency. Another theory is that users are withdrawing XRP from the platform in light of uncertainty or in favor of self-custody amid ongoing regulatory pressures in the United States.

Notably, this change comes as XRP remains locked in a tight price range below $3, with limited signs of bullish movement. The stagnant market conditions may have prompted some holders to rethink their storage strategies.

Community Reactions Remain Mixed

Within the broader XRP community, opinions are divided. Some investors interpret the decrease in XRP addresses as a bearish signal, worrying that it represents declining institutional confidence in the asset. Others see this as a healthy move toward decentralization and personal asset control, especially with increasing concerns over exchange custody risks.

Social media platforms and XRP-focused forums reveal a wide spectrum of sentiment—from strategic optimism to concern about long-term support from major exchanges like Coinbase.

XRP’s Role in a Shifting Market

XRP has had a tumultuous road, particularly due to its ongoing legal battle with the U.S. Securities and Exchange Commission. While the asset has weathered legal, regulatory, and market headwinds, trust in centralized exchanges remains fragile. The decision by Coinbase, whether strategic or user-driven, speaks volumes about this evolving relationship between platforms and digital asset holders.

The decreasing footprint of XRP on Coinbase underscores growing trends in the crypto ecosystem—namely, shifting preferences for control, transparency, and adaptive exchange strategies in the face of regulatory scrutiny. As cold storage practices change, both investors and analysts will closely monitor what this means for XRP’s broader adoption and liquidity.

Visual representation of blockchain data trends and wallet activity changes.

Related: XRP Price: $12M Max Pain for Bears

For further details, visit the original report on Coinbase XRP Cold Wallets Drop from 52 to Just 6.