Coin Bureau just put Ripple’s community on fire after reporting that Coinbase had slashed its XRP holdings from 780 million tokens down to 199 million – a massive 69% reduction in just a few weeks. Once the fifth-largest XRP holder, Coinbase now sits in 10th place according to data from XRPScan.
On the surface, that sounds like a classic “dump” narrative – a big exchange cutting its stash, possibly signaling weakness or institutional selling. But is that really what’s happening here?
What you'll learn 👉
The Bullish Case: Not a Dump, but Accumulation
XRP community voices were quick to push back. Popular XRP supporter CryptoSensei explained that falling reserves on exchanges rarely mean the exchange itself is selling. Instead, it’s usually a sign that investors – often large institutions – are buying tokens and moving them off the exchange into cold storage or custodial solutions.
🚨COINBASE DUMPING XRP?
— Coin Bureau (@coinbureau) September 4, 2025
Data from XRPScan shows Coinbase slashed its $XRP stash from 780M → 199M in weeks — a 69% cut.
Once the 5th-largest holder, Coinbase is now 10th. Institutional outflows look to be driving the plunge. pic.twitter.com/TpAuCEKJhS
“When exchanges like Coinbase show a massive drop in XRP reserves, it doesn’t mean they’re dumping,” CryptoSensei wrote. “It means people and institutions are buying XRP and moving it off the exchange into custody, reducing the tradable supply.”
This is important because a shrinking exchange supply can actually be bullish. It lowers the amount of XRP available for immediate sale, which reduces selling pressure. If demand picks up, that dynamic can trigger price appreciation.
Read also: Ripple vs SEC: Why XRP Holders Were the Hidden Force in Court
XRP’s Broader Utility and Why Institutions Care
Another community member pointed out that XRP is far more than just a payments coin. Thanks to EVM compatibility and its consensus mechanism, the XRP Ledger can handle a wide range of Web3 use cases – from tokenized treasuries and CBDCs to fractionalized real estate.
The example shared was the Dubai Land Department, which recently launched tokenized land deeds on the XRPL, enabling fractional ownership of real estate backed by actual titles. That’s more than just theoretical utility – it’s real-world adoption of blockchain for high-value assets.
It’s also worth remembering that XRPL launched the first decentralized exchange (DEX) back in 2012 and has been running smoothly ever since. Many in the community argue this makes XRP a “bluechip” crypto – a project with deep roots, strong infrastructure, and plenty of growth potential as Web3 scales.
So, Is Coinbase Dumping XRP?
Looking at the data, it’s much more likely that institutions and whales are scooping up XRP and moving it into long-term custody. Coinbase itself isn’t known for aggressively trading its own token reserves – it’s a custodian. When wallets shrink, that often means customer withdrawals, not exchange selling.
So while “Coinbase dumping XRP” makes for a catchy headline, the reality seems different. If anything, the decline in exchange reserves is a sign of accumulation. And in crypto markets, reduced supply plus steady or growing demand has historically set the stage for rallies.
The takeaway? Rather than panic about Coinbase cutting its holdings, XRP holders might want to view it as another sign that bigger players are quietly stacking tokens behind the scenes.
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