Leverage trading is rapidly declining in the Ripple (XRP) derivatives market, deepening investor caution. While the reduction of excessively accumulated positions has lowered the risk of cascading liquidations, the inflow of new capital has also weakened, leading to assessments that XRP is facing a so-called 'liquidity paradox.'

Open Interest Down 22.7%

Vincub, a cryptocurrency market analyst, recently stated on social media that the total open interest in the XRP derivatives market has declined to approximately $773.5 million. This represents a roughly 22.7% decrease compared to the $1 billion level observed in May. Open interest (OI) refers to the total value of outstanding contracts in the derivatives market, including futures and perpetual futures, that have not yet been settled or closed. Generally, when open interest increases alongside a price rise, it is interpreted as a sign of new capital flowing into the market.

Binance's XRP Exposure Also Shrinks

Vincub explained in particular that XRP derivatives exposure on Binance, one of the world's largest cryptocurrency exchanges, has shrunk to approximately $350.6 million. This demonstrates that enthusiasm for XRP-related derivatives trading on Binance is cooling rapidly.

Defending the $1 Mark Is Key

The market considers whether XRP can hold the $1 level to be the critical question, with analysts noting the need to closely monitor future market trends.

[※ This article was written with the assistance of AI. Cryptocurrency derivatives statistics may vary depending on the compilation standards and timing of exchanges and data providers, so it is essential to verify the latest raw data. Cryptocurrencies and leveraged products carry very high risks of price volatility and forced liquidation, and all investment decisions and their ultimate responsibility lie solely with the investor.]