XRP Futures Drop Signals Waning Speculation

• XRP futures open interest has fallen from $1.7B to $0.7B.
• Funding rates dropped sharply from 0.01% to 0.001%.
• Glassnode notes a structural slowdown in speculation.

The crypto market is showing clear signs of cooling off when it comes to XRP. Since early October, XRP futures open interest has dropped a sharp 59%, falling from $1.7 billion to just $0.7 billion, according to blockchain analytics firm Glassnode. This significant decline suggests that traders may be stepping back from aggressive speculation in the XRP market.

Funding Rates Plummet Alongside Interest

Not only has open interest declined, but funding rates—a key measure of market sentiment in futures trading—have also taken a dive. From around 0.01% in early October, the funding rates for XRP perpetual contracts have now slumped to just 0.001%. These ultra-low rates indicate a lack of bullish or bearish conviction, as traders are no longer paying a premium to hold leveraged long or short positions.

This combination of low funding rates and declining open interest points to one thing: the hype is fading, at least for now.

Glassnode Identifies a “Structural Pause”

Glassnode analysts have termed this shift a “structural pause in speculative appetite.” This means traders are waiting for clearer signals before jumping back in. While such pauses can be temporary, they often reflect a more cautious market environment.

With XRP’s price movements being less aggressive and speculative bets winding down, it may signal a period of consolidation or even a potential trend shift. Whether this will lead to renewed investor interest or prolonged stagnation remains to be seen.