XRP loses $700 million in futures bets while XRPL builds a $4 billion institutional pipeline

An important story is making waves across the blockchain ecosystem. Demand for XRP is weakening across several key market indicators, testing whether the XRP Ledger’s (XRPL) growing institutional pipeline can translate into sustained investor and network activity. US spot XRP exchange-traded funds recorded about $7. 2 million in net outflows in the week ended July 10, according to SoSoValue.

The withdrawals ended a nine-week inflow streak that brought nearly $200 million into the products. The weekly outflow ranked among the five largest for XRP funds this year, though it represented only a modest reversal in the broader trend. The products have attracted cumulative net inflows of $1.

Market Dynamics

48 billion, while their combined assets approached $1 billion at the end of the week. Still, the shift coincided with a decline in futures exposure and some of the weakest XRPL user activity recorded in 2026, suggesting that demand is cooling across both regulated investment products and the wider market. XRP open interest falls as bullish traders pay more That cooling in fund demand is also showing up in the leveraged market, where traders are cutting exposure.

Global open interest in XRP futures fell from nearly $3 billion in June to about $2. 3 billion by mid-July, according to CoinGlass. XRP Open Interest (Source: CoinGlass) The decline was most evident on Binance, where open interest fell from over $500 million in mid-June to $399 million by July 10, according to CryptoQuant data.

Long liquidations rose 94% from the previous week and stood 172% above their three-month average, while short liquidations fell by more than half. Meanwhile, XRP funding rates moved in the opposite direction. Binance’s XRP funding rate increased 266% over the week despite a shrinking pool of open positions and elevated long liquidations.

Market Impact

The divergence suggests that the remaining bullish traders are paying higher premiums to maintain exposure in a contracting derivatives market. That structure could leave XRP vulnerable to another funding reset if prices weaken and additional long positions are forced to close. XRPL activity concentrates as wallet growth stalls The retreat from leveraged trading is also evident in XRPL, where fewer wallets are participating even as established services generate more activity.

Blockchain analysis platform Santiment reported that XRPL experienced its second-quietest day of the year this week, logging only 25,350 active wallets. The pipeline of new participants has similarly dried up, with new wallet creation plummeting to 2,130. This is the lowest level recorded since November 2024.

XRPL Network Activity (Source: Santiment) The slowdown followed a brief increase in dip-buying activity in late June. Since then, both active wallet numbers and new wallet creation have fallen back, with no clearer price or network catalyst. However, other indicators suggest that network activity has become more concentrated among existing users and applications rather than disappearing altogether.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.