Payment-Focused Cryptocurrency XRP is increasing faster than bitcoin and ether after investors looked for bargains following the crisis at the beginning of the month.
The price of XRP has risen 38% to $1.55 since hitting a low of $1.12 on February 6, according to data from CoinDesk. Prices have risen more than 5% in the last 24 hours alone.
This performance puts it well ahead of bitcoin and ether, which have rallied roughly 15% since February 6. At the time of writing, bitcoin and ether changed hands at $69,420 and $2,020, respectively.
XRP’s rally that outperformed bitcoin follows buying signals on Binance after the February 6 crash. Data from CryptoQuant indicates that Binance’s XRP reserves fell sharply by 192.37 million XRP to 2.553 billion between February 7 and 9. The 7% drop marked the lowest level since January 2024, and holdings have remained stable since then.
Analysts usually associate a drop in exchange balances with the accumulation of investors. The logic is that investors prefer to directly custody the coins instead of holding them on exchanges when they intend to hold them for the long term.
Sudden, abrupt withdrawals can reduce available supply, opening the door to a price rally. Historical trends reinforce this view. XRP rebounded sharply from $0.60 to over $2.40 in the final two months of 2024 as the balance held on exchanges fell faster.
