XRP Open Interest Plummets to One-Year Low as Binance Trading Grinds to Near Standstill

XRP faces unprecedented trading apathy as market interest evaporates

THE BINANCE SLOWDOWN

Open interest crashes to levels not seen since 2024—trading volume on the world's largest exchange barely registers. The once-bustling XRP markets now resemble a ghost town, with liquidity drying up faster than a puddle in the desert.

WHY TRADERS ARE FLEEING

Market makers pull back positions, institutional interest wanes, and retail investors seek greener pastures. The regulatory uncertainty continues to cast a shadow that even Binance's massive user base can't penetrate. Another case of crypto winter hitting specific assets harder than others—because nothing says 'stable investment' like a token that can lose 90% of its trading activity overnight.

THE SILENT TREATMENT

Exchange order books show more empty space than meaningful liquidity. Bid-ask spreads widen to levels that would make traditional finance traders laugh—if they weren't too busy counting their actual profits elsewhere. The crypto market's selective memory strikes again, forgetting XRP exists until the next lawsuit or partnership announcement.

When even Binance can't generate meaningful volume, you know an asset has reached peak obscurity—proving once again that in crypto, today's darling becomes tomorrow's forgotten experiment faster than you can say 'regulatory clarity.'

XRP open interest diminishes on Binance

As the crypto market slowed down, most of the liquidity shifted to Binance. The exchange remains the chief venue for XRP, carrying over 7% of trading. The conditions on Binance show liquidity is shifting on the top coins, including XRP derivatives. 

Binance trading conditions are signaling a shift in XRP activity. Open interest for XRP is NEAR a six-month low of $1.4B on all exchanges. On Binance, XRP open positions fell from $1.7B to around $591M, with a recent low of $473M. 

Liquidity flowed out of both long and short positions, as traders stayed away from a choppy market with no clear directional signal. XRP also lacks general directional conviction to sustain momentum for derivative trading. 

The biggest decline in open interest happened as XRP fell below $2, but the rebuilding of positions may take longer. A combination of lower prices and low open interest signals traders are still waiting, and short-term activity may not be enough to sustain a price recovery. 

XRP signals a potential downturn

XRP funding rates have also often turned negative on some exchanges, suggesting the bullish confidence is diminishing. Negative funding is a sign of selling pressure, potentially pointing to more downside for XRP.

On social media, XRP sentiment is more bearish from retail traders. XRP went through a period of whale distribution, with no signs of renewed accumulation by large traders. 

In 2025, XRP showed hopes of an ETF launch, but the new instruments were delayed. XRP was among the prime candidates for an ETF, though solana took the lead with new products. 

XRP also passed the digital asset treasury company. Ripple itself announced plans for a $1B treasury, but the organization was already known for having large reserves of tokens. Additionally, the DAT may have been supplied in-kind, instead of relying on new XRP buying on the open market. 

XRP mindshare is still 2.1% on social media, with a 21% rise in the past weeks. However, the token is still viewed as predominantly bearish until it discovers new sources of liquidity. The XRPL LAYER liquidity is also limited, as the platform only took a small share of DeFi activity.

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