Coinbase Divides XRP Holdings by Three: Is This a Strategic Move or a Lack of Trust?
In a move that has raised eyebrows within the cryptocurrency ecosystem, Coinbase, one of the world's largest digital asset exchanges, has significantly reduced its XRP reserves. The change, which has seen the exchange's XRP holdings drop by around 69% since the second quarter of 2025, has not gone unnoticed.
The reduction in Coinbase's XRP reserves, from approximately 780 million tokens to 200 million, could be attributed to several factors. Hypotheses suggest institutional repositioning, regulatory uncertainties affecting XRP, and a strategic shift away from XRP holdings towards other assets or stablecoins. However, specific detailed reasons have not been explicitly stated.
The decrease in XRP reserves and "cold" wallets linked to Coinbase has also suggested an organized and rapid withdrawal. The number of "cold" wallets has decreased significantly, from several dozen to just a few. This could indicate a deliberate action on the part of Coinbase, but the exact reasons remain unclear.
The market's short-term expectations are revised when a key player like Coinbase adjusts its position. The shift in Coinbase's XRP holdings could be due to a treasury rebalancing, a change in custody, or regulatory caution. Further analysis is needed to determine the exact reasons for this change.
Meanwhile, Coinbase's reduced XRP holdings have moved the exchange from being the 5th largest XRP holder to a position within the Top 10. This change in custody at Coinbase could involve externalization or self-custody, reducing visible on-chain balances.
Elsewhere, Bitcoin Hyper, a Layer 2 grafted onto Bitcoin, has been making waves. The project, which is capable of running smart contracts thanks to the Solana Virtual Machine (SVM), has allocated its funds between development, security, liquidity, and ecosystem to build a solid and credible foundation.
Bitcoin Hyper's design includes a rollup-like architecture, a native bridge to Bitcoin, developer-friendly tools, and an announced evolutionary governance. The market is looking for useful infrastructures for regulation and concrete adoption, making a L2 "Bitcoin-first, SVM-powered" like Bitcoin Hyper attractive.
In a market returning to fundamentals, only teams that truly execute will make a difference. As Coinbase adjusts its position, the focus remains on the teams that can deliver and contribute to the growth and development of the cryptocurrency market.
