Coinbase is experiencing a decline in its XRP reserves, losing ground to competitors amid growing interest in cryptocurrency.
Reduction of Coinbase Reserves
According to Blockchain data, Coinbase currently controls just over 132 million XRP tokens, significantly below Kraken's 185 million and far behind leaders like Binance, Upbit, and Uphold.
Competition in the XRP Market
Some analysts believe Coinbase strategically reduced its reserves at XRP's highs, redirecting coins to institutional custody. Meanwhile, competitors like Gemini and Bybit continue to dominate trading volumes with innovative products, including Gemini's XRP cashback credit card.
Outlook for Coinbase
Coinbase's shrinking presence comes at a time when global interest in XRP is growing, highlighting the challenges the company faces in adapting to new conditions. Currently, only ten wallets on Coinbase show positive XRP balances.
The situation in the XRP market indicates that Coinbase needs to adapt to the competitive environment to maintain its position among leading cryptocurrency exchanges.
