Key takeaways
- XRP trading volume plunged 79% despite price recovery
- Over $40 million in XRP longs were liquidated
- Futures positions rebuild while spot buying remains weak
Between October 8 and October 10, XRP/USDT daily turnover on Binance fell from $252.45 million to $54.12 million. Over the same period, XRP's closing price increased 1.6%, recovering from $1.3805 to $1.4024.
The divergence follows a liquidation wave that wiped out more than $40 million in leveraged bullish positions, leaving traders watching whether XRP can sustain its recovery without stronger spot-market activity.
XRP Trading Volume Plunges 79% While Price Recovers
Trading activity reached $252.45 million on October 8 before falling to $120.39 million on October 9 and $54.12 million on October 10.
The 78.6% decline is particularly notable because XRP's closing price rose during the same period, suggesting that the recovery lacked consistent volume confirmation on Binance.
Buyer-initiated trading also weakened. Its share of Binance spot volume dropped from 51.8% on October 9 to 43.1% the following day, indicating that buyers became less aggressive even as prices moved higher.
However, these figures cover one trading pair on one exchange, not the entire XRP market.
$40.7M in XRP Long Positions Liquidated Across Three Exchanges
The shrinking spot volume followed significant losses in XRP derivatives markets.
XRPL.to recorded approximately $40.70 million in long liquidations across Binance, Bybit and OKX on October 7–8, compared with just $1.72 million in short liquidations.
Binance accounted for $24.69 million in liquidated longs, followed by Bybit at $11.65 million and OKX at $4.36 million.
These figures represent the notional value of forcibly closed contracts, not traders' realized cash losses. They also reflect a monitored exchange-data sample rather than a complete market-wide liquidation count.
The broader crypto selloff placed additional pressure on leveraged positions as traders reduced exposure.
XRP Futures Rebuild, but Spot Demand Remains Uncertain
Despite the liquidations, derivatives traders began rebuilding positions by October 11.
Binance's open interest increased 1.3% to 297.75 million XRP, while Bybit recorded a 3.3% rise to 201 million XRP compared with the previous day's readings.
Nevertheless, outstanding exposure remained below October 8 levels on both exchanges.
Funding rates also turned positive, indicating that traders holding long perpetual futures positions were again paying shorts. Positive funding rates can accompany bullish positioning, but they do not guarantee further price gains.
