Binance’s latest proof-of-reserves report for April highlights a noticeable surge in XRP holdings on the platform, revealing that net user balances of XRP climbed by 16.09 million tokens over the month. The report further notes that users shifted primarily towards U.S.-regulated stablecoin assets during the same period.
XRP balances see sharp increase
On-chain data from Binance shows a collective XRP account balance rising from 2.587 billion at the start of April to 2.603 billion by the month’s end. By May 1, the total on-chain XRP held in Binance wallets had reached 2,630,051,340 tokens. The reserve ratio for XRP stood at 101.01%, indicating more than enough holdings to fully cover user liabilities.
This significant growth coincided with a period when XRP’s price traded within a strong technical band, fluctuating between $1.41 and $1.50. Throughout April, U.S.-based spot XRP exchange-traded funds (ETFs) recorded an unprecedented $81.59 million in net inflows. The trend extended into the first 10 days of May, with these funds seeing an additional $34.21 million in net inflows.
According to the report’s notable findings, Binance users’ accumulation of XRP is expected to continue in May, reflecting a broader ongoing trend of XRP accumulation on the world’s largest crypto exchange.
Shift towards U.S.-regulated stablecoins intensifies
Market observers point out that not only direct fiat inflows but also a redistribution among stable digital assets were key drivers of this trend. Comparisons of USDT and USDC balances reveal a shift in trader preferences ahead of the U.S. Senate’s scheduled CLARITY Act sessions in May.
During April, Binance’s leading stablecoin, USDT, saw a $385.84 million (down 1.10%) reduction in user balances. Meanwhile, balances for Circle’s USDC rose by $547.55 million, marking a 6.29% increase. As a result, USDC’s reserve ratio soared to 106.66%, providing the exchange with a robust liquidity cushion.
Liquidity movement and impact on altcoins
Another notable outcome was that all released liquidity from USDT, and even more beyond, flowed into the U.S.-domiciled USDC. Still, a portion of available capital shifted towards major altcoins, especially XRP. This resulted in more than 16 million XRP tokens being added to relevant exchange addresses.
These dynamics highlight how Binance users, amid ongoing discussions of U.S. crypto regulations, are increasingly favoring assets perceived as secure and transparent. The rises in both XRP and USDC balances underscore investors’ adaptation to the changing regulatory environment.
Binance remains the industry leader in terms of volume and user base. Established in 2017, the platform is renowned for its extensive product suite, international reach, and exceptionally high trading activity. Its proof-of-reserves reports are closely watched as measures of transparency and user trust.
