A notable shift has emerged in inter-exchange XRP transfer activity in recent weeks. Deposits of XRP to the Bybit exchange, which surged from mid-April, have dropped to nearly zero by mid-May. This development has significantly eased the strong selling pressure that had weighed on the market for about a month.
Deposit wave on Bybit concludes
From mid-April to mid-May, Bybit recorded persistently high daily XRP deposit activity. The transactional delta—measuring the difference between deposits and withdrawals—remained in positive territory throughout this period. In the cryptocurrency market, large inflows of tokens to exchanges typically signal intentions for selling or liquidation, often leading to increased short-term downward price pressure.
Around May 16, however, the net deposit balance of XRP on Bybit stabilized to a near-neutral level. As a result, the recent selling pressure caused by increased supply of XRP on this platform has essentially evaporated.
Crypto analyst Amr Taha has highlighted the importance of daily deposit and withdrawal delta data tracked across major exchanges. While the metric only tracks the number of transactions—not the total volume of XRP involved—recent directional changes nevertheless stand out as important for market participants.
Although the neutralization of deposit activity on Bybit does not guarantee a direct impact on price, it suggests a substantial reduction in the supply-side pressure that has persisted in recent weeks. Observers are now closely watching which strategies investors may favor in the days ahead.
Glossary: Transaction delta refers to the difference between the number of deposit and withdrawal transactions on an exchange over a specific period. A positive delta indicates more deposits, while a negative delta shows withdrawals are dominant.
Withdrawals dominate on Binance and Coinbase
While deposit pressure has receded on Bybit, the trend has reversed at Binance and Coinbase. On these two large platforms, the transaction delta has moved into negative territory, meaning XRP withdrawals now exceed deposits.
This shift from depositing to withdrawing creates a different market environment. When crypto investors move their balances away from exchanges, it typically reduces short-term selling pressure on that asset. Therefore, the significant XRP outflows recently observed on Binance and Coinbase could shrink the circulating supply accessible on these platforms.
Over time, a consistent excess of withdrawals over deposits can influence the overall buy and sell balance for the asset. However, market analysts warn against drawing long-term conclusions solely based on short-term transaction deltas.
As hot money inflows to Bybit have slowed and the tide has turned toward withdrawals at Binance and Coinbase, a new equilibrium is taking shape for XRP. These metrics can provide market signals but, as they reflect only transaction direction, they are just one piece of the broader market puzzle.
“The end of a month-long deposit surge at Bybit, combined with increased withdrawals on Binance and Coinbase, marks a major turnaround in the supply and demand dynamics for XRP. Although tracking transaction counts alone lacks precision in volume, recent directional changes emphasize the need to monitor market flows closely.”
