The estimated leverage ratio (ELR) for XRP on Binance has climbed to approximately 0.213, marking its highest level since January. On-chain analytics firm CryptoQuant, via analyst Arab Chain, highlighted the metric following a 44% weekly rally that drew a fresh wave of leveraged long positions into the derivatives market.
The ELR compares derivatives open interest against actual XRP reserves held on Binance, with a higher reading indicating increased borrowed exposure relative to exchange reserves. Throughout most of 2026, the ratio remained within a subdued range of 0.13 to 0.19, following a late 2025 deleveraging cycle.
Derivatives activity surged alongside the price movement. Futures volume reached roughly $6.4 billion over a 24-hour period, exceeding spot market volume of approximately $1.2 billion. Open interest stood near $3.45 billion, with account ratios on Binance showing roughly two accounts long for every short, and an even higher ratio among top traders.
The increase in leverage follows a regulatory and exchange-level adjustment, as Binance increased the maximum leverage on XRP and RLUSD from 5x to 10x effective August 21.
Broader market factors also accompanied the rally. The U.S. Treasury expanded its bond-buyback program, pulling long-term yields lower and coinciding with a wider crypto market move. Institutional interest remained visible as disclosures showed Goldman Sachs and Bank of America holding XRP exchange-traded funds. Additionally, fundamental developments included Ripple supporting an institutional credit fund utilizing the RLUSD stablecoin on the XRP Ledger, and ongoing payment initiatives in Korea.
Market observers note that positioning risks remain a key factor, with traders monitoring whether spot volume will align with futures activity and how the leverage ratio behaves relative to price movements.
