XRP Leverage Hits 7-Month High Amid Price Surge

XRP's price surge has reached its peak, but market experts are warning of heightened volatility due to the increased leverage ratio on Binance. The token's value has risen by 44% in a week, outperforming many other cryptocurrencies.

This rally was supported by a broader crypto market boost following the U.S. Treasury's bond-buyback program and Ripple's backing of an institutional credit fund using XRP Ledger stablecoin. However, with the price recently dropping nearly 5% after peaking above $1.50, some analysts are cautioning that elevated leverage combined with falling prices could trigger large liquidations.

The U.S. Treasury's bond-buyback program has had a positive impact on the crypto market, but experts warn that this volatility may continue in the coming days. The XRP futures trading volume across major exchanges surged to $11.37 billion on August 22, marking the highest level since February.