XRP's Price Battle Heats Up as Coinbase Loses Control of Key Holdings

Coinbase has seen a decline in its XRP holdings position relative to its key competitors, as recent data indicates a shift in market dynamics for the Ripple-backed asset. An analysis of on-chain activity and market trends highlights how Coinbase, despite maintaining a significant presence in the XRP market, has lost ground to other exchanges and institutional actors in terms of controlling the flow and pricing power of the asset.

Recent on-chain data reveals that a large XRP transfer of approximately 17.8 million tokens, valued at around $52.68 million, was made from an unmarked Coinbase address to another Coinbase-affiliated wallet. This movement, tracked by Whale Alert and further confirmed by on-chain analysis, was identified as an internal transfer between Coinbase accounts, rather than an external shift in market supply. Such transactions are typical for exchanges aiming to manage liquidity and secure assets, but they have sparked speculation about Coinbase's broader strategy in the XRP market.

Coinbase's role in XRP's price dynamics has been a topic of discussion, particularly following a notable 581 million XRP reserve drop, which led to allegations of market manipulation. Despite these allegations, the exchange continues to play a central role in XRP trading, with XRP ranking among the top five Layer 1 assets by daily trading volume. Over the past 24 hours, XRP trading volume reached $5.48 billion, with a 22.97% increase compared to the previous period, indicating sustained interest and activity.

XRP's price performance in 2025 has been marked by significant volatility. The token's price hit a new high in late August at $3.02 but fell below that mark shortly thereafter, hovering around $2.86 in recent days. Despite this dip, XRP has outperformed many of its peers, with yearly gains of approximately 440% as of early September, significantly outpacing the Layer 1 category average. The recent 6% price increase since yesterday reflects broader market optimism, particularly in light of the Federal Reserve's dovish signals and the ongoing development of XRP-related financial products, such as futures and potential ETF listings.

Market observers are closely watching the behavior of large institutional and retail investors in XRP. Recent data indicates that whale activity has been mixed, with some large wallet holders accumulating XRP while others have been liquidating positions. This dynamic is influencing the token’s price action, particularly in the context of a broader sideways consolidation phase. Analysts suggest that a breakout above the $3.30 level could signal a renewed bullish trend, potentially driven by institutional adoption, regulatory developments, and macroeconomic factors.

The competitive landscape for XRP is intensifying, with other exchanges and financial platforms gaining ground in both trading volume and market share. This shift is partly attributed to the growing number of XRP-related products and services, including the recent launch of an XRP futures ETF on the CME and the filing of a potential XRP spot ETF proposal. These developments are likely to attract a broader investor base and increase institutional participation in the market. As such, the race for XRP holdings is not just about liquidity but also about positioning in an asset class that is gaining increasing recognition in the global financial system.