XRP’s price action in recent weeks has been deprived of bullish momentum, and the derivatives market is also sending clear signals that traders are scaling back their exposure to the cryptocurrency.
Data from on-chain analytics platforms like CryptoQuant and Coinglass across leverage and futures activity shows that speculative participation has thinned out considerably, with XRP’s leveraged trade ratio at its lowest point since November 2024.
XRP Leverage On Binance Drops To Multi-Year Lows
One of the clearest signals of the sentiment among traders comes from CryptoQuant data tracking the Estimated Leverage Ratio of XRP on Binance, the world’s largest crypto exchange.
The Estimated Leverage Ratio measures how much borrowed capital traders are using relative to exchange reserves. High readings of the ratio usually mean high activity trades where traders are willing to open positions. On the other hand, declining values indicate that traders are closing leveraged positions or avoiding them altogether.
According to data from CryptoQuant, the estimated leverage ratio for XRP is currently sitting around 0.187, its lowest reading since November 2024. To put this in context, the estimated leverage ratio was at a 0.59 reading in July 2025, right when the altcoin was pushing toward new all-time highs and trading activity was at its peak.
Therefore, the current low means that the token has moved into a de-risking phase, and traders are prioritizing reduced exposure over aggressive upside bets. This is in contrast to the performance of Spot XRP ETFs, which have been on a streak of inflows.
Futures Open Interest Collapses From July Highs
A similar story of crypto traders no longer betting big on XRP can be seen from the futures data from Coinglass.
Data from Coinglass figures show that Exchange XRP Futures Open Interest is currently around 1.81 billion XRP, which is worth approximately $3.47 billion. This number is notable because open interest was around $10.94 billion in July during the cryptocurrency’s march to a new all-time-high price of $3.65. Therefore, the 68% decline from $10.94 billion to $3.47 billion is a massive contraction in speculative participation across derivatives markets.
Open interest tracks the total value of outstanding futures contracts and is also a direct gauge of trader engagement, comparable to the estimated leverage ratio. Rising open interest alongside price strength usually confirms bullish trend momentum, while falling open interest shows traders are closing positions and fading appetite for futures contracts.
Interestingly, the decline seen in this metric since July indicates that traders have largely exited leveraged positions rather than rotating from longs to shorts.
A positive reflection from the combination of these two data points is that the token is no longer dominated by aggressive speculative flows, which lowers the risk of cascading liquidations, but it also removes a major source of bullish momentum for the cryptocurrency.
Featured image from Getty Images, chart from Tradingview.com
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