Binance reported a pronounced increase in XRP spot trading from July 4 through July 8, with inflows peaking on July 7.
Spot Market Momentum
CryptoOnchain, monitoring data on CryptoQuant, observed capital shifting toward the spot arena while leveraged positions were being unwound. On July 7, Binance recorded an influx of 64.9 million XRP, contrasting with outflows of 49.2 million XRP on the same day. This net inflow signaled heightened interest from investors seeking exposure to the cryptocurrency.
Derivatives Market Contraction
Despite the spot surge, Binance’s XRP derivatives continued to lose steam, as open interest fell from a peak above $500 million in mid‑June to $431 million by July 4 and further to $399 million on July 10. Long liquidations surged 94 % week over week, reaching 172 % above the three‑month average, while short liquidations dropped 53 %. The widening gap indicates a retreat of leveraged traders from the crypto market.
Funding Rates and Investor Sentiment
Funding rates on Binance rebounded after briefly turning negative in late June, climbing 266 % week over week to a level of 0.007. CryptoOnchain interpreted the rise as a sign that new long positions are paying steeper premiums even as overall leverage contracts. On‑chain metrics also hinted at a modest recovery, with transaction volume edging upward as investors re‑engage with the XRP blockchain.