Binance XRP leverage ratio hits 7-month high as futures risk rises

Binance's XRP estimated leverage ratio reached 0.213 on Aug. 24, its highest since January, after the exchange doubled maximum futures leverage to 10x.

The reading, tracked by derivatives data provider Coinglass, marks a jump from roughly 0.1899 earlier in the week as XRP traded between $1.24 and $1.48. Binance raised the maximum leverage for XRP perpetual futures from 5x to 10x on Aug. 21, encouraging traders to take on more risk.

The current ratio remains well below the 2025 peak of 0.59, but the build-up coincides with a rally that lifted XRP about 40 percent in August to $1.48, its strongest August since 2021. XRP traded at $1.48, up 2.89 percent over 24 hours, with a market capitalization of about $93.07 billion and 24-hour trading volume of $4.75 billion, per CoinGecko.

Higher leverage raises the risk of sharp liquidations if prices reverse, with XRP's 24-hour range stretching from $1.30 to $1.69 on Aug. 22. Traders now watch whether the token can clear resistance between $1.53 and $1.64, a zone that must break to trigger a move toward the $2.89 target set by Standard Chartered's Geoffrey Kendrick.

The derivatives build-up comes as XRP's on-chain activity surged 654 percent in two weeks, with active addresses jumping from 47,180 to 356,070 between Aug. 10 and Aug. 24, according to on-chain data. The spike coincided with Gemini enabling Singapore users to deposit and withdraw XRP directly on the XRP Ledger.

Market maker Wintermute opened a short position exceeding $10 million in notional value on Aug. 24 at 07:01 UTC, betting against a derivatives market where open interest remains skewed to the long side, according to monitoring flagged by CoinsProbe. The move raises the prospect of a squeeze that forces long liquidations if XRP's momentum stalls.

The leverage build-up carries two-sided risk. While higher leverage reflects trader confidence and can extend momentum, it also increases the chance of liquidation cascades if the market turns. With funding rates favoring longs and a major market maker holding a large short, XRP's next move is a contested bet between institutional conviction and retail-driven exposure.

This article is for informational purposes only and does not constitute investment advice.