CryptoQuant’s index tracking the relative scarcity of XRP supply on Binance climbed to around 2.1, its highest level since 2022.
According to an analysis shared by CryptoQuant, the XRP Binance Scarcity Index rose rapidly in recent days after remaining in negative territory throughout September and October. The indicator points to a narrower supply of XRP available for trading on the exchange compared with previous periods.
Sharp reversal after two months in negative territory
The index’s clear move into positive territory stood out as one of its strongest moves in the past four years. A reading of around 2.1 was the highest level recorded since 2022.
The indicator had also fallen sharply into negative territory at times in 2023 and 2024. It recovered during some periods in 2025 and 2026, while the latest rise points to a more pronounced change in the relative supply on the exchange.
Why does this matter for XRP’s price?
A decline in the supply available for trading could affect the supply-demand balance on Binance if demand for XRP strengthens. If the trend continues, the amount of XRP available for trading on the platform could become more limited.
However, how the price responds to this change depends on buying activity, demand, and liquidity movements. CryptoQuant’s assessment does not provide a price target; the point it highlights is a change in relative supply conditions on the exchange.
An index reading of 2.1 does not represent an amount of XRP or a 2.1% decline. Therefore, the indicator does not reveal exactly how much XRP has left the exchange or which group of investors drove the move.
Not investment advice.