XRP derivative market virtually 'collapsed'... 71% of open interest evaporated, is it a sign of rebound?

▲ XRP/AI Generated Image

The XRP derivatives market has shrunk to a near-collapse level, causing investor sentiment to rapidly freeze.

According to cryptocurrency media outlet Coingape on April 14 (local time), on-chain analytics firm Glassnode reported that XRP perpetual futures open interest has sharply declined since deleveraging in October 2025. At that time, open interest, which was around 7 billion XRP, decreased to 2 billion XRP in a short period, plummeting by 71%, and has since further decreased by 25% to its current level of approximately 1.5 billion XRP.

The decrease in open interest signifies a contraction in speculative demand from market participants. Glassnode analyzed that the overall vitality of the derivatives market has significantly declined due to limited new capital inflow after a large number of leveraged positions were liquidated.

The proportion of investors who have entered loss-making positions has also expanded. A significant number of investors who bought XRP at prices above $2 in the last 12 months are now in a loss-making state, with realized losses ranging from $20 million to $110 million per day since November 2025.

Overall market sentiment has also significantly contracted. Santiment stated that the Fear, Uncertainty, and Doubt (FUD) index related to XRP has risen to its third highest level in the past two years. This is a result of the price trend, which has fallen by more than 60% in the last nine months, accelerating the departure of retail investors.

However, past instances have shown a pattern of short-term rebounds after extreme pessimism has formed. This reflects the structure of the virtual asset market, which often moves contrary to market expectations.

Currently, the XRP derivatives market is in a phase where both deleveraging and investor sentiment contraction are occurring simultaneously. The recovery of open interest and the return of market participants will serve as key indicators for determining future price direction.

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