XRP experienced a sharp leverage reset this week as traders saw rapid liquidations across both long and short positions, with open interest dropping from $558 million to $478 million in just two days.
Leverage declines with liquidations, funding rate turns negative
Data from derivatives markets showed that leverage on XRP shifted downward, moving from 0.203 to 0.182 following $14.2 million in two-way liquidations. Both bullish and bearish speculators were affected by this volatility, experiencing forced position closures after a series of rapid market moves.
In addition, XRP’s funding rate dipped to -0.002, ending a 14-session run of positive readings. This development signals a shift in market sentiment, as the cost of holding long futures positions had been consistently higher for over two weeks.
Open interest in XRP futures dropped 14% to $478 million, while a negative funding rate broke a two-week positive streak, highlighting a significant shift in trader positioning following a wave of liquidations.
Despite the sudden market activity, exchange-held supply showed minimal change. Binance, the world’s largest cryptocurrency exchange, continued to hold approximately 2.6176 billion XRP in reserves during this period.
The number of addresses sending XRP to Binance fell sharply—down 91%—as market participants appeared reluctant to transfer coins onto the exchange amidst the volatility.
| Metric | Before Liquidation | After Liquidation |
|---|---|---|
| Open Interest | $558 million | $478 million |
| Leverage Ratio | 0.203 | 0.182 |
| Binance XRP Reserve | 2.6176 billion XRP | 2.6176 billion XRP |
XRPL asset value and RLUSD stablecoin volume surge
Meanwhile, asset growth on the XRP Ledger (XRPL) remained robust. The recorded value of all assets on the network jumped from $99 million in the first quarter of 2025 to $4.26 billion in the second quarter of 2026, according to the latest data.
Quarterly figures have shown steady increases, with Evernorth reporting a 68% year-over-year rise in XRPL trading volume, even as activity eased slightly from Q1 levels.
Most real-world assets on XRPL are managed through registry-style instruments, which suggest a preference for institutional custody over frequent peer-to-peer transfers.
Distinct from other assets, RLUSD stablecoin posted a dramatic surge in transferred value, rising 925% year-over-year. The network also recorded growth in the number of holders and established trust lines, reinforcing RLUSD’s expanding role within the ecosystem.
Mini dictionary: RLUSD is a stablecoin issued on the XRP Ledger, designed to maintain price parity with the US dollar and facilitate on-chain transactions, remittance, and settlement for large institutions and individuals.
Technical analysts highlight familiar chart patterns as Senate vote nears
Prominent crypto analyst Dark Defender shared a technical view suggesting that XRP is repeating long-term chart formations seen before previous major rallies. According to his analysis on X, the price has remained positioned above several exponential moving averages, echoing patterns observed in 2014 and 2017.
The analyst referred to the potential next move as “The Frog Leap,” with a chart indicating a possible target near $18.23. This would represent a gain of approximately 1201% from current levels, if realized.
Dark Defender observed that XRP is exhibiting “2017 and 2014 Exponential Moving Average Jumping Patterns,” with the next all-time high “closer than you can ever imagine,” regardless of whether the US Senate passes the CLARITY Act.
Focus is now on the US Senate, where a cloture vote on the CLARITY Act is scheduled for September 15. The bill, which aims to clarify crypto regulatory structures, requires 60 votes to move forward. The Republican Party currently holds 53 seats.
Former federal prosecutor Renato Mariotti declared that momentum behind the CLARITY Act has weakened, calling the bill “dead.” In contrast, Senator Cynthia Lummis warned that any delay could postpone crypto market structure legislation until 2030.
Separately, US Treasury buybacks totaling $22 billion are expected in the coming weeks, with some investors considering this as a contextual factor as the Senate vote approaches.
