XRP Leverage Reset Fuels Price Recovery Hopes Amid Stable Binance Reserves
XRP's recent price volatility has led to a significant reduction in leverage on both sides of the market, resulting in a cleaner market without an accompanying surge in exchange supply. The Open Interest for XRP fell by 14% from $558 million to $478 million as of writing, while the leverage ratio decreased from 0.203 to 0.182.
This reset followed $14.2 million in two-way liquidations within a span of 48 hours, affecting both sides of the market equally. Funding Rates then dropped to -0.002, ending a fourteen-session streak of positive rates that indicated traders were aggressively chasing long positions.
Despite this setback, Binance reserves for XRP remained flat at 2.6176 billion, while deposit addresses plummeted by 91%. This indicates that leverage has cooled without investors rushing coins to Binance, which is favorable for base-building as funding rates stabilize.
The expansion of capital within the XRP Ledger is also worth noting, with recorded asset value increasing from $99 million in Q1 2025 to a substantial $4.26 billion by Q2 2026. Tokenized assets and stablecoins are showing different growth patterns, revealing how XRPL's expanding capital is being utilized.
The majority of Real-World Assets (RWAs) have been represented by registry-style instruments, pointing towards institutional representation and custody rather than freely circulating assets between users. In contrast, RLUSD displays a contrasting dynamic, with transferred value surging 925% year-over-year as holders and trust-line openings also increased.