XRP Exchange Outflow Panic Traced to CryptoQuant Glitch

The XRP community was recently abuzz with reports of a massive $12 billion outflow from exchanges, sparking fears of a potential supply crisis. However, new analysis shows that these XRP reserve outflows were largely due to a data glitch, not actual events.

Earlier this week, traders and investors were stirred by claims that several major exchanges—most notably Binance and Upbit—experienced significant XRP withdrawals. According to analytics provider CryptoQuant, the withdrawals supposedly totaled over $12 billion worth of XRP. Binance was said to have moved out 617 million XRP over a week, while Upbit reportedly saw an even more dramatic drawdown of 4.989 billion XRP.

These reports left many in the Ripple and larger crypto sectors questioning whether a supply shock was imminent, as declining exchange balances typically signal either whale accumulation or anticipated price movement. The trend even appeared to extend to other platforms like Bybit and Bitfinex, strengthening the narrative of a widespread exodus of XRP from centralized exchanges.

However, upon closer inspection, the alarm appears to be largely unfounded. Independent on-chain analysis suggested that these exchanges did not, in fact, move such substantially large amounts of XRP. Instead, the data may have been misreported due to a temporary glitch in CryptoQuant’s reporting systems.

As of now, CryptoQuant seems to have corrected the issue in their updated dashboards, although the platform has yet to release an official statement. The Crypto Basic reached out to CryptoQuant for clarification, but no response has been provided at press time. Nonetheless, updated data paints a more accurate picture of XRP’s distribution across exchanges.

For instance, the earlier claim that Binance saw withdrawals of hundreds of millions of XRP has been proven inaccurate. A newer analysis confirms that Binance still holds a considerable 2.8 billion XRP, with only about 35 million XRP moved since June 18. This amount is far from the dramatic figures initially cited.

Similarly, Upbit’s alleged plunge in holdings to 1.08 billion XRP has been corrected. In reality, the exchange currently maintains 6.08 billion XRP—making it the platform with the single largest XRP reserve globally. Contrary to expectations, Upbit has actually received more XRP deposits since June 18, challenging the original claim of a mass exodus.

In contrast, the data for Bybit and Bitfinex appears to still show notable movements, albeit not at the inflated scale initially reported. Bybit’s reserves have indeed decreased from 326.75 million XRP on June 15 to 230.5 million XRP, indicating real outflows of around 96 million XRP over the past two weeks. However, this is still a far cry from the billions suggested earlier and may either reflect actual withdrawals or be another lingering data inconsistency that CryptoQuant has yet to address.

Additionally, Bitfinex currently holds 58.55 million XRP, with outflows totaling 4.117 million XRP. The platform’s numbers are modest when compared to the overblown earlier claims. Again, the inconsistency raises questions about data accuracy on CryptoQuant’s part, particularly since the glitch correction may not have been applied universally across all platforms.

It’s also worth noting that Binance’s recent activity indicates continued large-scale XRP holdings, reinforcing the idea that fears of a supply shortage were premature.

While the initial reports sparked concern within the XRP and Ripple ecosystems, the corrected data provides reassurance. The transient scare appears to have stemmed from a technical lapse rather than any fundamental issue with XRP or Ripple-supported exchanges. As always, investors are reminded to verify data from multiple sources before drawing conclusions, particularly in fast-moving crypto markets where misinformation can spread rapidly.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, the XRP outflow scare turns out to be more fiction than fact. Investors can breathe a little easier knowing that Ripple’s token remains widely held across major trading platforms, and no extraordinary supply crunch is underway.