XRP derivatives market shrinks by 78% from October’s peak

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The XRP derivatives market has fallen sharply since the crypto crash of October 11, 2025, through April 13, 2026.

For nearly 7 months, the XRP Futures Open Interest Perpetual – an indicator tracking the total value of all ongoing leveraged trades for XRP – has dropped by about 78.57% to approximately 1.5 billion tokens, according to data from Glassnode. Essentially, derivatives traders have retreated from this altcoin, reducing positions from nearly $20 billion to about $2 billion at press time.

XRP Futures Open Interest Perpetual. Source: Glassnode

The liquidity of XRP has gradually declined since the October crash, hence fueling the altcoin’s extreme fear, uncertainty, and doubt (FUD), as Finbold highlighted. As a result, derivatives traders have provided little bullish fuel for this token, with more liquidity remaining on the sidelines amid concerns over midterm uncertainty caused by geopolitical tensions in the Middle East and crypto regulatory delays in the United States.

XRP price outlook amid derivatives collapse

The capitulation of the XRP derivatives market has weighed down on the token’s potential midterm bullish outlook. Moreover, this altcoin has also experienced low liquidity due to a collapse in inflows into its exchange-traded funds (ETFs), as Finbold pointed out.

Notably, as XRP’s derivatives crashed by more than 78% over the past seven months, the altcoin fell by more than 44% to trade at about $1.34 at press time. Consequently, the token’s market capitalization has slumped to approximately $82.4 billion at the time of publication.

XRP/USD 6-month performance. Source: Finbold

In the near term, if the XRP derivatives decline further amid renewed spot appetite, as Finbold reported, a possible short squeeze – a bull rally fueled by short sellers’ liquidation – could be imminent. However, if the token’s derivatives continue to shrink and the spot market fails to maintain momentum, the price could face a further selloff.

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