Binance moved a significant amount of XRP across its wallets early Tuesday, a trend which could indicate significant customer demand as XRP price attempts a recovery.
On-chain data shows that around 6:40 UTC on Tuesday, Binance made three large XRP transfers across its wallets. The exchange moved 20,634,685 XRP ($10.9 million), 21,235,383 XRP ($11.2 million), and 22,555,390 XRP ($11.9 million).
While popular blockchain tool Whale Alert flagged the transfer as a movement from Binance to unknown wallets, further investigation revealed that Binance had also activated the XRP addresses that received the transfer.
Specifically, the wallet addresses became active on January 3 and have since been used by Binance as hot wallet addresses to service customers’ XRP demand.
A transaction trail showing users moving funds from it to other exchanges such as Bybit, Bitso, and Upbit. There are also transfers to the payment platform Payeer and prediction service Stake.com.
While some of these exchange transactions involve internal transfers, others see movements to users’ cold storage addresses, where they are safely kept away as long-term investments.
Meanwhile, on-chain transparency provides a basis for trusting cryptocurrency exchanges, as opposed to traditional financial systems where users have little visibility into fund movement.
Binance, like most exchanges, already offers proof-of-reserve reports, assuring customers that funds are safe amid any type of market condition.
XRP Begins Recovery
It is also worth noting that the latest large XRP transfers by Binance have come at a time when XRP has begun making a recovery from its most recent lows.
While XRP’s progress may not perfectly mirror the broader crypto market, investors in the cryptocurrency have more reasons to be hopeful than in despair.
In the past week, XRP has gained over 5.5%, climbing from $0.4989 to $0.53 at the time of writing. The gradual recovery may be the preliminary phase of what many analysts believe will be a significant bull run for the cryptocurrency.
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