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Coinbase’s XRP reserves have seen a dramatic decline in recent months, with only two cold wallets remaining. The exchange has moved out billions of XRP since June 2025, prompting speculation about supply trends and market implications for the cryptocurrency.
Coinbase Cold Wallets Shrink Significantly
According to updates from the community commentator “XRP Liquidity”, Coinbase now has only two cold wallets holding XRP. Each wallet contains roughly 16.4 million XRP, totaling 32.88 million XRP, valued at nearly $98.6 million at the current price of $3 per XRP.
This represents a 96.59% drop from the $2.88 billion previously stored across 52 cold wallets just three months ago. XRPScan data confirms that the remaining wallets are Cold 247 and Cold 438, marking a sharp reduction in Coinbase’s long-term storage of XRP.
Recent Fund Movements
On-chain analysis shows a steady transfer of XRP from cold to hot wallets, likely to satisfy withdrawal requests or facilitate platform transfers. For instance:
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Cold 124 moved 16.483 million XRP to Coinbase (10) hot wallet on September 18, 2025.
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Cold 384 transferred 16.483 million XRP to Coinbase (7) hot wallet the following day.
These hot wallets quickly distributed XRP to other platforms and addresses, including Stake, Binance, ChangeNow, and Hype, following the pattern observed in prior movements. At present, Coinbase (7) holds just over 1 million XRP, while Coinbase (10) retains only 56,992 XRP tokens.
Implications for XRP Supply
The rapid depletion of Coinbase’s cold wallets has triggered discussions in the crypto community. While some analysts suggest that whales could be absorbing XRP from exchanges, potentially tightening supply and influencing market prices, no official statements have been issued by Coinbase.
This trend highlights the shift from long-term storage to active circulation, reflecting increased liquidity and the potential for higher trading activity. If withdrawals continue, market observers may see pressure on available XRP supply across exchanges, which could influence short-term price movements.
Historical Context
Previously, Coinbase held 52 cold wallets with XRP totaling $2.88 billion in June 2025. A report from The Crypto Basic four days ago indicated six cold wallets holding 98.81 million XRP, before four of those wallets were emptied.
The ongoing reduction in cold wallets mirrors a larger trend in crypto exchanges reallocating assets from cold storage to active wallets to meet user demand. This pattern demonstrates Coinbase’s responsive liquidity management, which could have broader implications for XRP market dynamics.
Market Reaction and Speculation
Community discussions suggest a mix of optimism and concern. While increased liquidity allows smoother withdrawals and trading, some investors fear that a smaller cold wallet reserve could limit the platform’s ability to handle large-scale market events.
XRP investors and traders are closely watching Coinbase’s reserve movements, as the shrinking cold wallet numbers could influence supply-demand dynamics. Analysts also note that institutional flows and whale activity may amplify volatility in the coming weeks.
Conclusion
Coinbase now holds only two XRP cold wallets, each containing about 16.4 million tokens, marking a drastic reduction from the hundreds of millions previously stored. The exchange continues to distribute XRP via hot wallets to meet withdrawal demand and support trading activity across multiple platforms.
While the reasoning behind this shift remains unconfirmed, the move highlights changing liquidity management practices at major exchanges. XRP holders should monitor on-chain wallet activity closely, as continued depletion of cold wallets may impact market availability and influence price trends in the short term.
