Ripple's Brazilian Breakthrough Threatened by Rising Leverage

Ripple has made significant strides in tokenizing Brazilian markets by partnering with CSD BR to tokenize capital markets on the XRP Ledger. This strategic move has added another layer of institutional momentum for Ripple, but its impact is yet to be seen in terms of price action.

The altcoin has been trading around the $1.5-$1.7 region since the beginning of the year, with a recent surge that saw it gain more than 70% from late August. However, on-chain data suggests that this growth may not be sustainable due to a growing supply of XRP on Binance and rising leverage.

The CryptoQuant report indicates that XRP's Binance Scarcity Index (BNI) is at its lowest level since January 2025, which means there is more XRP available for selling in the market. This contradicts the accumulation thesis, making it a potential bull trap instead.