XRP Binance scarcity index falls to lowest level since January 2025

XRP’s supply situation on Binance just flashed a warning sign that traders haven’t seen in over 18 months. The Binance scarcity index for XRP, a metric produced by analytics platform CryptoQuant, has dropped to its lowest reading since January 2025, signaling that the token is more readily available for trading than it has been in a long time. For a token already trading between $1.10 and $1.13, well below its 2025 peak above $3, a flood of supply hitting the largest exchange by volume is the kind of development that tends to make bulls nervous. What the scarcity index actually measures Think of the scarcity index like a thermometer for how much XRP is sitting on Binance relative to historical norms. When the reading is high, it means XRP balances on the exchange are thin compared to their average, suggesting holders are pulling tokens off into cold storage or other venues. When it’s low, the opposite: there’s a glut of XRP available for immediate sale. The index has been on a roller coaster throughout 2026. It climbed to roughly 0.75 to 0.80 between late April and May, a range that historically aligns with accumulation behavior, where large holders are pulling XRP off exchanges an...