The XRP deficit index on Binance has dropped to approximately -0.94, the lowest level since January 2025. The indicator has been declining since late August when it was around a neutral mark. The shift of the indicator into negative territory means that the number of XRP coins on the exchange has noticeably increased relative to historical levels on which it is calculated.
Analyst under the pseudonym ArabChain cited CryptoQuant data indicating that the available XRP supply on Binance has become more abundant. High values of the indicator typically suggest a reduction in the volume of coins listed for sale, so the current downward movement indicates a shift in the balance of supply and demand on the platform. Previous measurements showed that deep declines coincided with periods when the number of XRP on Binance was increasing. The current value is significant also because the indicator has not only returned to negative but has continued to fall to -0.94: the relative abundance of XRP on Binance is now noticeably higher than for most of the recent past.
This situation may indicate a greater volume of coins available for trading on the exchange. If traders decide to close positions en masse, the supply for sale will increase. The indicator itself does not confirm that a sell-off is indeed occurring: the author emphasized that such activity needs to be cross-referenced with data on XRP reserves, flows to exchanges, and trading volumes.
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