XRP is outpacing both Bitcoin and Ethereum as investors scoop up tokens following the sharp sell-off earlier this month.
The payments-focused cryptocurrency has climbed 38% to around $1.55 since bottoming on Feb. 6, according to data from CoinDesk. Over the past 24 hours alone, XRP has gained more than 5%.
By comparison, bitcoin and ether have risen roughly 15% from their Feb. 6 lows. The two largest cryptocurrencies recently traded near $69,420 and $2,020, respectively.
XRP’s outperformance appears to coincide with signs of aggressive dip-buying activity on Binance. Data from CryptoQuant shows Binance’s XRP reserves fell by 192.37 million tokens to 2.553 billion between Feb. 7 and 9. That 7% decline brought exchange balances to their lowest level since January 2024, with holdings stabilizing in the days that followed.
Falling exchange reserves are often interpreted as a sign of accumulation, as investors tend to move assets into private wallets when planning to hold for the longer term. Sharp withdrawals can tighten available supply on trading venues, potentially paving the way for price advances.
Historical patterns support that narrative. In the final two months of 2024, XRP surged from roughly $0.60 to above $2.40 as exchange balances declined at an accelerated pace, underscoring the link between reduced supply and strong upward momentum.
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