XRP Glitch Uncovered: $12B Exchange Outflows Were Wildly Inaccurate

Hold onto your wallets—someone’s math was off. By a lot.

The $12 Billion Mirage

A technical hiccup in XRP’s ledger reporting inflated exchange outflows to a staggering $12 billion. Turns out, the actual movement was a fraction of that. Whoops.

How the Glitch Played Out

Faulty node synchronization misreported transaction volumes, sparking panic (and probably a few premature Lambo dreams). Exchanges scrambled to clarify—no, they weren’t bleeding XRP.

Crypto’s ‘Trustless’ Irony

Another day, another ledger quirk reminding us that ‘code is law’ until it’s… wrong. Meanwhile, Wall Street still charges 2% fees for manual reconciliation. Progress!

Stay skeptical. Verify your data. And maybe double-check that ‘to the moon’ spreadsheet.

The XRP Outflow Buzz: What Was Initially Reported

Earlier this week, market observers raised red flags when CryptoQuant data appeared to show that large exchanges—namely Binance, Upbit, Bybit, and Bitfinex—had experienced huge XRP outflows. According to the data, Binance reportedly lost 617 million XRP over a seven-day period, while Upbit supposedly saw a jaw-dropping 4.989 billion XRP withdrawn.

At the time, these numbers were interpreted by many as a sign of impending volatility or major whale accumulation. The narrative quickly gained traction on social media and in trading forums, with some speculating that the altcoin might be gearing up for a major price MOVE due to a sharp drop in exchange supply.

On-Chain Data Tells a Different Story

Despite the noise, on-chain analysis quickly cast doubt on the accuracy of the data. Investigations into the wallet activity of Binance, Upbit, and other involved exchanges revealed no movements that matched the scale of the alleged withdrawals.

In its follow-up analysis, The Crypto Basic confirmed that there had been no actual activity to support the initial figures. Instead, it now appears that the shocking drop in XRP exchange reserves was due to a technical issue with CryptoQuant’s data feeds.

While CryptoQuant has yet to issue a formal explanation or comment on the matter, its updated charts show a much different picture—one that aligns with on-chain evidence.

What the Corrected Data Shows

According to the revised figures:

• Binance still holds around 2.8 billion XRP, with only a modest 35 million XRP withdrawn since June 18.

• Upbit, which was previously believed to have just 1.08 billion XRP, actually maintains 6.08 billion XRP in reserves, making it the largest XRP-holding exchange in the world.

• In fact, Upbit has seen net inflows of XRP during the same period.

These updated numbers completely reverse the initial impression of massive capital flight and instead indicate relative stability in XRP holdings across major platforms.

Bybit and Bitfinex: Some Data Still In Question

While the Binance and Upbit charts have been corrected, CryptoQuant’s data for Bybit and Bitfinex still shows significant declines:

• Bybit’s reserves reportedly dropped from 326.75 million XRP on June 15 to 230.5 million XRP, a net loss of over 96 million XRP.

• Bitfinex’s reserves fell by about 4.1 million XRP, bringing its total to 58.55 million XRP.

It remains unclear whether these two cases reflect actual outflows or whether they too are victims of uncorrected data glitches. Without confirmation from the exchanges or updated on-chain reviews, these numbers should be interpreted cautiously.

Impact on the XRP Market

The initial reports of the $12 billion outflows sparked concerns about a potential XRP liquidity crunch. However, with the corrected data now painting a more accurate and far less alarming picture, those fears appear to have been premature.

Still, the incident has highlighted the crypto market’s sensitivity to analytics data and the importance of verifying reports through on-chain tracking. Even a minor glitch can send shockwaves across the ecosystem, especially for assets like XRP, which frequently face heightened scrutiny from both retail and institutional traders.

Final Thoughts

The XRP exchange outflow panic turned out to be a false alarm, largely caused by a glitch in CryptoQuant’s data. Although minor outflows did occur—particularly on Bybit and Bitfinex—the scale of the movement was vastly overstated.

As of now, top exchanges like Binance and Upbit remain well-stocked with XRP, and long-term holders continue to accumulate. This case serves as a reminder of the importance of cross-verifying data before drawing conclusions, particularly in a market as reactive as crypto.