Binance XRP Scarcity Index Hits Highest Level Since Mid-2024

The XRP scarcity index on Binance has spiked to its highest level since mid-2024, indicating that the asset has become scarcer on the platform. According to CryptoQuant's data, the index has reached approximately 0.77 over the last three days.

This change reflects a structural shift in the supply balance on Binance, suggesting that XRP is becoming harder to find on the exchange. The spot price of XRP has not increased at the same pace as the scarcity metrics, indicating that the current inventory drawdown is not solely a reaction to immediate price action.

The analysts note that this change could be due to a drop-off in retail and institutional deposit activity on the exchange or an uptick in user withdrawals moving assets off-exchanges.