Investors have withdrawn 240 million XRP tokens from exchanges over the past three months, according to the latest data from CryptoQuant. The outflow has mirrored a price decline, with Ripple’s native token dropping to the $1 level in August. South Korea’s Upbit led withdrawals with 110 million tokens removed, while Bithumb saw 30 million XRP withdrawn. The sell-off follows a sustained fall from $3.65 to $1, prompting traders to reallocate capital. XRP briefly dipped below $1 this week to $0.97 before recovering to $1.11. The broader market’s shift toward AI technology has diverted investment away from cryptocurrencies, limiting XRP’s recovery prospects.
Investors have pulled 240 million XRP tokens from exchanges over the last three months, according to the latest data from CryptoQuant. The withdrawal has reflected negatively in the charts, as Ripple’s native token fell to the $1 level in August.
The data shows that the amount of withdrawals has outnumbered purchases, indicating weakness in XRP. South Korea’s Upbit saw the highest number of withdrawals with 110 million tokens removed, while Bithumb saw 30 million XRP tokens withdrawn.
The relentless fall from $3.65 to $1 is among the reasons for the sell-offs. Holding on for the long term would only force traders to hoard tokens against their will, and a sell-off allows them to invest in other assets.
XRP dipped below the $1 zone this week, touching a low of $0.97. However, it saw a rebound and is currently trading at $1.11 on Thursday.
Despite the turnaround, XRP remains at the crossroads of a major price change, and the change is mostly downward. The withdrawal of 240 million XRP tokens stands as testament to the eroding confidence in the altcoin.
A quick recovery is off the cards, as the market is more focused on AI technology. The industry has received an influx of investments from both retail and institutional clients.
What once flowed into the cryptocurrency market is now diverted into AI stocks. The reason for the massive inflow is that the assets have been delivering constant gains, and even after a dip, the bounceback is much larger. XRP is currently unable to match these returns, which has led to a series of withdrawals from traders.
