XRP Leverage Soars as Price Pulls Back

XRP's recent 44% price surge has brought leverage back into its derivatives market, raising concerns of a sharper pullback. According to data from CryptoQuant, the estimated leverage ratio for XRP on Binance has climbed to about 0.21, its highest since January.

This measure compares derivatives open interest with exchange reserves, indicating more leveraged exposure relative to the amount of XRP sitting on the venue. On Binance, about two accounts were betting long on XRP for every one betting short on Wednesday, CoinGlass data shows.

$XRP futures generated about $6.4 billion of volume over the previous 24 hours, more than five times the roughly $1.2 billion traded on spot markets. With leverage at a seven-month high and $3.45 billion of open positions tilted heavily long, a deeper drop can force exchanges to close positions that no longer have enough collateral behind them.