Derivative activity on Ripple’s XRP is increasing dramatically even as its price weakens. Binance Open Interest (OI) jumped from roughly $360 million in early August to $461.3 million, representing the highest OI value since early July. Despite that boom, XRP’s price slipped toward $0.992 after trading above $1.10 in late July. This divergence suggests traders are committing more capital despite weak price action. Meanwhile, exchange wallet activity increasingly favors withdrawals, with Coinbase leading this shift at -14,300 net wallets. The divergence between rising leverage and falling price creates conditions where smaller price moves can trigger larger liquidations.
Derivative activity on Ripple [XRP] is increasing dramatically even though the price for XRP is weakening. This divergence creates an increasingly large gap between the amount of leverage used and the current trend in the market.
Binance Open Interest (OI) has jumped from roughly $360 million in early August to $461.3 million, representing the highest OI value since early July. Despite that boom, XRP’s price slipped toward $0.992 after trading above $1.10 in late July.
This divergence suggests that, according to the data, traders are committing more capital despite price action remaining weak. As leverage accumulates near the psychological $1 level, smaller price moves can trigger larger liquidations and accelerate volatility.
XRP’s increasing leverage in derivatives markets meets a contrasting trend in spot markets. Exchange wallet activity increasingly favors withdrawals.
Data shows Coinbase represents nearly half of all XRP exchange volume traded on exchanges. Since February 28th, the U.S.-based exchange leads this shift at -14,300 net wallets, meaning withdrawals have outpaced deposits for XRP on Coinbase.
Both Binance and Crypto.com have reported a net decrease in active user accounts since March 27th. Although Coinbase dominates 47.3% of all XRP exchange activity, Upbit’s share has dropped sharply from 40% to just 12%.
For XRP near $1, sustained withdrawals could gradually reduce readily tradable supply. However, this becomes apparent only if exchange balances also decline, proving withdrawn XRP is no longer used in local circulation.
