XRP Activity Hits Lows Not Seen Since 2023 — But Signs of Optimism Remain

The report highlights a dramatic slowdown in activity on the XRP Ledger, with usage plunging roughly 80% from its December high—a level of inactivity not seen in months.

The slump isn’t limited to just on-chain behavior. Derivatives tied to XRP are also experiencing a cooldown. Open interest in futures has dropped nearly 70%, dipping to figures not seen since late 2023. At the same time, funding rates are sliding, occasionally turning negative—suggesting fading bullish conviction among traders.

Leverage use among XRP holders is weakening as well. CryptoQuant notes a decline in the estimated leverage ratio, a metric derived from comparing open positions to the available XRP reserves on exchanges. This hints at a shift toward more cautious positioning by market participants.

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Yet, despite the overwhelmingly bearish indicators, XRP has held its ground better than some of its peers. Its price has dropped by about 35% since December, whereas assets like Ethereum have shed nearly 60% over the same stretch.

One intriguing trend that stands out is the steady fall in exchange-held XRP. Reserves on centralized platforms have dipped to levels last seen in July 2023, which could imply that more holders are opting for self-custody—often a sign of longer-term confidence.

While the broader data paints a gloomy picture, CryptoQuant believes this could represent a turning point. The combination of lower exchange balances and relatively stable prices might suggest underlying optimism among XRP holders, even in a tough market environment.

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