According to the latest reserve proof data from Binance, the user balance of XRP has skyrocketed in just one month. From July 1 to August 1, exchange users added 59 million XRP, raising the total XRP holdings from 2.61 billion to nearly 2.675 billion.
In response to this significant increase in demand, Binance has boosted its XRP reserves. The platform currently holds over 2.75 billion XRP, with a reserve ratio of 102.96%, slightly down from 103.09% in July. This slight decrease in the reserve ratio reflects the rapid growth in user balances, with demand far exceeding the platform's XRP supply.
Binance Optimizes Custody Operations Amid High Demand
Third-party holdings have also increased significantly, from 56 million to 76 million XRP. This may indicate that Binance is optimizing its custody operations, possibly by transitioning to more institutional custody solutions to enhance security and efficiency.
XRP also experienced a period of high volatility during the same timeframe. It surged in the first half of July, doubling to over $4. However, this excitement did not last long, and prices soon stabilized in the range of $2.90 to $3.10 by the end of the month.
According to on-chain data, price volatility has not discouraged many Binance users; instead, they continue to hold XRP tokens or even purchase more. This indicates that more people are adopting a strategic and long-term investment approach, even in a predominantly speculative market.
Although prices have been volatile, on-chain evidence shows that a large number of users continue to hold or even increase their XRP holdings. This demonstrates that the market has shifted towards a more strategic long-term investment behavior, amidst a capital market dominated by short-term speculation.
The sharp increase in this user balance, along with a stable reserve ratio, indicates an increasing trust in XRP. The continuous rise in the number of users holding and the reserves of Binance shows that recent price fluctuations have not discouraged investors, and XRP continues to show strong potential in the market.
