XRP liquidity on Binance falls to its lowest since January 2020

The 30-day liquidity index for XRP on Binance indicated on Tuesday that the digital asset’s liquidity has declined to its lowest level since January 2020. The 30D Liquidity Index for XRP on the crypto exchange has fallen to approximately 0.043.

The drop in XRP’s liquidity on Binance to its lowest in the last five years reflects a significant decrease in market depth and confidence in the virtual asset. The decline also shows that the liquidity of XRP available for trading has decreased compared to previous periods.

XRP’s low liquidity signals potential end to selling pressure

XRP Liquidity on Binance Falls to Its Lowest Level Since January 2020

“Liquidity at these low levels could make the market more sensitive to sudden price movements, as large orders may have a greater impact on price.” – By @ArabxChain

Link ⤵️https://t.co/ugoh9111zo pic.twitter.com/oMYPDDzvtV

— CryptoQuant.com (@cryptoquant_com) May 26, 2026

On-chain data showed that XRP’s liquidity index rose to elevated levels between 2022 and 2024, reaching 3 and 4 points. The high liquidity levels also coincided with increased trading activity and strong market volatility.

The 30D Liquidity Index for XRP on Binance has also declined sharply in recent months to its current low levels. The drop indicates weakening speculative interest in the digital asset and a reduction in new liquidity inflows into the market.

Continued low liquidity at the current levels could also make the market more sensitive to sudden price fluctuations. Large market orders tend to have a significant impact on price due to a lack of market depth, as evidenced in periods of low liquidity, when price is more prone to sharp movements if trading volumes suddenly surge.

XRP’s low liquidity on Binance also reflects caution and anticipation among market participants amid lower market activity and declining selling pressure. The virtual asset has traded bearish for the past few weeks, but the latest liquidity crunch, close to zero on the world’s largest crypto exchange, suggests momentum may flip soon.

At the time of publication, XRP has plunged 1.04% in the past 24 hours to $1.34. The digital asset has also dropped by 1.67% over the past 7 days and by nearly 6% over the past 30 days.

Binance XRP reserves have also dropped to a 3-month low, down from roughly 3 billion when the asset was trading above $3 last year, to roughly 2.7 billion XRP. The drop in XRP reserves on the crypto exchange suggests there’s less immediate selling pressure.

CME prepares to launch 24/7 XRP futures trading

Crypto tracking platform XRPScan revealed on Monday that wallets tied to Chris Larsen, Ripple’s co-founder and present executive chairman, became active in the wake of his pledged donations in the midterm elections. Larsen has pledged $3.5 million in contributions to support New York Democrat Alex Bores, while he also plans to back Gavin Newsom’s anticipated 2028 presidential campaign. The firm found modest transactions registered under Larsen’s wallets, which prompted speculation among market participants. 

On-chain data revealed that Larsen currently holds an estimated 2.58 billion XRP across eight addresses. The crypto official’s holdings are worth roughly $3.5 billion under the current XRP price of $1.34, making him among the digital asset’s largest individual holders. 

Larsen’s XRP transactions are closely monitored due to historical correlations between transfers and price volatility. In January 2025, one of his wallets transferred more than $109 million in XRP to major exchanges, including Coinbase, Bybit, and Bitstamp, after being dormant for nearly 7 years. In July 2025, another Larsen-linked wallet transferred 50 million XRP worth roughly $175 million, with more than $140 million going to trading platforms. The transfer occurred while XRP approached its record high above $3.40.

There are also institutional developments adding a long-term structural shift to XRP’s price, with the CME Group preparing to launch 24/7 crypto futures trading on Friday, including XRP-linked derivatives. The new initiative will eliminate traditional trading-hour restrictions and is expected to improve the asset’s liquidity flow across weekends and global sessions. CME’s previously launched XRP futures products have already attracted institutional participation, and continuous trading could further increase activity by improving price discovery.

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