Coinbase Significantly Reduces XRP Cold Wallet Holdings: A 96.59% Drop

XRP Holdings Shrink to Just Two Cold Wallets

Coinbase has drastically reduced its XRP cold wallet holdings, a move that has caught the attention of crypto enthusiasts and analysts. According to data reported by The Crypto Basic on September 21, the exchange now manages only two XRP cold wallets, compared to 52 just three months ago. This represents an astonishing 96.59% reduction in its XRP reserves.

The two remaining wallets—dubbed "Cold 247" and "Cold 438"—each hold approximately 16.4 million XRP, bringing the combined total to 32.88 million XRP. At the current exchange rate of $3 per XRP, this is equal to about $98.64 million in total value. This marks a sharp contrast from June 2023, when Coinbase controlled an impressive 2.88 billion XRP, equivalent to $2.88 billion at that time.

XRPScan Data: Insight into Active Cold Wallets

According to tracking data from XRPScan, the assets within Coinbase’s remaining wallets are distributed as follows:

• Cold 247: Holds 16.48 million XRP, valued at approximately $49.45 million.
• Cold 438: Contains 16.39 million XRP, worth an estimated $49.19 million.

The significant reduction in holdings aligns with an ongoing trend of wallet consolidation and large-scale transfers observed since June. Over the past three months, Coinbase has moved around $2.78 billion worth of XRP out of its wallets, with $197.79 million transferred in the last four days alone.

Timeline of Wallet Activity and Consolidation

Back on September 16, Coinbase still controlled six cold wallets holding a total of 98.81 million XRP. However, between September 17 and September 21, four of these wallets were emptied, consolidating Coinbase’s XRP reserves into just two active wallets.

This rapid reduction is further underscored by recent large-scale transfers:

• On September 18 at 1:12 a.m. (UTC), the "Cold 124" wallet offloaded 16.48 million XRP to Coinbase’s hot wallet, labeled "Wallet 10".
• The next day, September 19 at 8:14 a.m. (UTC), the "Cold 384" wallet moved another 16.48 million XRP to a second hot wallet, identified as "Wallet 7".

Redistribution to External Platforms: The Hot Wallet Role

Once transferred to hot wallets, the XRP did not remain within the Coinbase ecosystem for long. The assets were quickly redistributed to external addresses or other platforms such as Binance, Stake, ChangeNow, and Hype. Industry observers believe these transactions likely facilitated customer withdrawal requests, confirming the operational role of Coinbase’s hot wallets.

As of now, the balances in Coinbase hot wallets are minimal:

• Wallet 7: Retains just over 1 million XRP.
• Wallet 10: Holds only 56,992 XRP.

This leaves Coinbase with negligible XRP liquidity in its hot wallets, raising questions about its ability to support further customer demands for the asset effectively.

Speculation Amid Coinbase’s Silence

Coinbase has not issued any official statement concerning the massive reduction in its XRP holdings. This lack of transparency has led to speculation within the cryptocurrency community regarding the potential implications on the broader XRP market.

Some community members hypothesize that Coinbase’s reduced XRP reserves could signal a supply shortage, potentially creating upward pressure on prices. However, these claims remain speculative and unverified.

As Coinbase has yet to answer inquiries or clarify its position, market participants are eagerly awaiting further updates to understand the exchange’s strategy and the potential consequences of these changes for XRP’s market dynamics.

Conclusion

The sharp decline in Coinbase’s XRP holdings—from 2.88 billion to just 32.88 million XRP within three months—marks one of the most considerable asset reductions observed in the platform’s history. With significant XRP volumes redistributed externally and minimal balances left in hot wallets, Coinbase’s silence adds to the air of uncertainty.

Until official comments emerge, one thing remains clear: Coinbase’s consolidation and reallocation of assets could have far-reaching implications for XRP liquidity, pricing trends, and broader market behaviors. Whether this signals preparation for regulatory developments, operational shifts, or other undisclosed reasons, the crypto community will be watching closely.