XRP futures market activity shows signs of significant cooling as traders reduce their exposure. Open interest has declined sharply, with heavy long liquidations pushing funding rates lower. Meanwhile, exchange transaction activity for XRP has fallen to its lowest level on record, indicating reduced market participation following the asset’s more than 60% price drop from its 2025 peak.
XRP failed to break above $1.40 this week despite earlier geopolitical optimism. New data shows speculative activity in the derivatives market has been cooling significantly.
Open interest in XRP futures has declined sharply across major trading platforms. This indicates a reduction in leveraged participation following a period of intense activity during the asset’s rally.
Despite the broader decline, Binance continues to lead with approximately $222 million in open interest. Bybit follows with about $195 million, though both are well below mid-2025 highs.
An analysis found a clear dominance of long liquidations over short liquidations in both frequency and total value. This pattern suggests that bullish traders have been disproportionately affected by recent market volatility.
The report stated that heavy long liquidations typically push funding rates lower. Such conditions generally reflect weakening bullish sentiment and increased caution among derivatives traders.
Activity involving XRP transfers to and from major cryptocurrency exchanges has dropped to its lowest recorded level. The data comes from an indicator tracking deposit and withdrawal transactions across 15 major platforms.
The sharp decline in transaction activity comes after XRP’s price fell by more than 60% from last summer’s highs. The drop means fewer users are currently interacting with exchanges for XRP.
