XRP downtrend deepens as open interest and liquidity fall

On July 9, on-chain analytics firm Cryptoquant reported declines across XRP derivatives and on-chain metrics. Dollar-denominated futures open interest fell to $350.6 million. Outstanding XRP futures contracts on Binance dropped to about 397 million XRP, the lowest level in more than three months. The token’s Network Value to Transactions (NVT) ratio stood at 162.86.

The open interest figure measures total value of outstanding futures positions in dollar terms, while the Binance contract count tracks outstanding contracts on that exchange. Cryptoquant noted that falling open interest commonly reflects leveraged traders closing positions and reduced participation in the derivatives market.

The NVT ratio compares market capitalization to transaction value on the network. Cryptoquant stated that an elevated NVT reading, at 162.86, indicates on-chain transaction activity has not increased enough to match the market valuation.

The firm wrote: ‘Market risk appetite has weakened significantly. Investors appear exhausted. Open positions in the futures market are declining, while the spot market’s capitalization continues to shrink.’

Cryptoquant added that lower open interest alone is not a definitive bearish signal and can reflect repositioning while traders wait for clearer direction. The analysis said a recovery in both XRP’s price and futures open interest would point to returning liquidity, while continued declines would indicate ongoing caution among traders.

The report noted limited evidence that fresh capital has replaced closed positions and that a more constructive market would require stronger capital inflows, renewed futures participation and higher on-chain transaction activity.