Binance XRP Leverage Ratio Hits Multi-Month Lows as Traders Retreat Amid Price Slump

On December 17, 2025, data from the cryptocurrency exchange Binance reveals a significant shift in trader behavior surrounding XRP. The digital asset's price decline below the $2.00 threshold has precipitated a dramatic contraction in derivatives market activity. A key metric, the Estimated Leverage Ratio on Binance, has plunged to 0.18. This figure represents the lowest level of trader leverage exposure observed since the inception of XRP's previous major rally, indicating a substantial retreat from risk-taking positions. Market analysts are closely monitoring this development, interpreting the large-scale unwind of leverage not as a sign of market-wide capitulation but rather as a strategic, defensive repositioning by traders. The systematic flushing out of excessive leverage is often viewed by professionals as a process that purges speculative excess and establishes a more stable and healthier foundation for potential future price movements. This contraction in derivatives activity suggests a period of consolidation and risk reassessment among XRP traders on the Binance platform, as the market digests recent price action and searches for a new equilibrium. The current low leverage environment could potentially reduce the risk of cascading liquidations and may set the stage for a more sustainable price trend once buyer confidence returns.

XRP Traders Retreat as Leverage Ratio Hits Multi-Month Lows

XRP's price slump below $2 has triggered a sharp contraction in derivatives activity. The Estimated Leverage Ratio on Binance—a key measure of risk appetite—plunged to 0.18, signaling the lowest trader exposure since the token's rally began.

Market analysts interpret the leverage unwind as a defensive repositioning rather than outright capitulation. 'When leverage flushes out systematically, it creates healthier foundations for the next move,' noted Arab Chain, a CryptoQuant contributor monitoring the derivatives reset.

The altcoin's 12% drop mirrors broader crypto market weakness, though XRP's subdued volatility suggests traders anticipate rangebound action. Exchange order books show thinning liquidity at both the $1.80 support and $2.20 resistance levels.

Trump-Linked Stablecoin USD1 Expands to Canton Network in Institutional Push

World Liberty Financial (WLFI), the cryptocurrency venture majority-controlled by the family of former U.S. President Donald Trump, has expanded its USD1 stablecoin to the Canton Network. The move marks a strategic shift from retail-focused blockchains to a platform designed for regulated institutional finance.

The expansion follows a $2 billion investment by Abu Dhabi's MGX into Binance, executed entirely in USD1. Binance has since introduced USD1 trading pairs for major tokens including SOL, ETH, and BNB. With a market capitalization of $2.7 billion, USD1 is backed 1:1 by short-term U.S. Treasuries and cash equivalents.

Canton Network's architecture offers privacy and compliance features for institutional use cases, positioning USD1 for high-value financial applications. The stablecoin's growth reflects increasing institutional adoption of blockchain-based dollar instruments.