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XRP derivatives activity on Binance has contracted sharply after open interest hit a record $1.76 billion on July 17, followed by a steep price decline and sustained deleveraging across the market. Open interest began falling as XRP’s price dropped from $3.55 to $1.83, marking a drawdown of nearly 50%. Since then, open interest has continued to shrink, recently slipping below $500 million.
Data from CryptoQuant shows the decline followed widespread liquidations and position closures, especially after a major liquidation event on October 10
According to CryptoQuant analyst Davos, XRP open interest on Binance has now fallen nearly 60% from its July peak. The drop reflects reduced derivatives participation. As positions closed, open interest remained below $500 million for an extended period. This level has persisted since the October 10 liquidation event that accelerated market exits.
Price declines have also mechanically reduced open interest values. As XRP moved lower, notional exposure shrank further, deepening the contraction in derivatives liquidity.
These conditions align with what analysts describe as a deleveraging phase. Such phases occur when open interest falls below its semi-annual average on Binance. Historically, these periods reduce excess leverage and forced-selling pressure. They also shift market control away from heavily leveraged short-term traders.
Past cycles show price action often stabilizes before participation gradually returns. While no timing is implied, reduced leverage lowers downside fragility during weak demand periods.
Separate discussions have focused on institutional engagement around Ripple and blockchain settlement. Host Versan Aljarrah referenced appearances by BlackRock and Ripple executives at Davos. Guest Jake Claver cited comments attributed to Larry Fink, stating that settlement efficiency would improve if assets were settled on one blockchain. Claver said Ripple’s presence suggested XRPL relevance.
Aljarrah added that access to forums like Davos reflects institutional filtering. He claimed ties between Ripple, BlackRock, and major banks appeared increasingly visible. David, known as Digital Outlook, pointed to Ripple’s acquisitions and infrastructure. He referenced custody platforms Metaco, Standard Custody, and clearing through Hidden Road as part of institutional positioning.
Meanwhile, BlackRock’s 2026 thematic outlook identifies Ethereum as the dominant tokenization layer. The firm noted that over 65% of tokenised assets currently sit on Ethereum.
With institutions debating settlement consolidation, one question remains: will deleveraged XRP markets and competing blockchain narratives converge as participation rebuilds?
Read More: XRP Chart Echoes 2017 Cycle as Ripple Deepens Saudi Ties: Will the Momentum Repeat Itself?
XRP open interest on Binance has fallen nearly 60% after a sharp price correction and sustained deleveraging. The decline reflects widespread position closures and reduced derivatives liquidity since October 10. With leverage reset below historical averages, market structure has shifted as institutional blockchain discussions continue to evolve.
