XRP open interest sheds $2.4B: Is a price crash next?

Key Points

1. XRP fell 15% from its peak of $3.66 on July 18, with futures open interest dropping by $2.4 billion (21% in USD terms).

2. Leverage fueled XRP's 68.7% rally between July 1 and July 18, but open interest has since declined to $8.8 billion, with liquidations totaling $325 million in the two weeks ending July 25.

3. Despite the drop, open interest remains 48% higher than a month ago in XRP terms, suggesting caution is warranted.

4. XRP futures have maintained a neutral sentiment, trading at a 6% to 8% premium, even during the $3 price retest and ETF speculation.

5. The XRP Ledger's DeFi adoption remains low, with only $134 million in tokenized assets and minimal DEX activity compared to other blockchains like Sui and Sei.