XRP derivatives are seeing bear dominance with a deeply negative funding rate and stagnant open interest, hinting at a lack of interest in the XRP ecosystem. XRP fell 9% to below $2, causing concern among traders. The XRP perpetual futures funding rate hit -20%, signaling a lack of demand from bullish traders.

The funding rate on XRP perpetual futures dropped to -20%, the lowest since October, indicating a lack of demand from bullish traders. Aggregate open interest in XRP futures remains at $2.8 billion, with leveraged positions not recovering to previous levels. Declining XRP ETF activity and fading TVL on XRP Ledger contribute to bearish sentiment.

US-listed XRP ETFs are experiencing declining daily volumes, dampening institutional interest. The Ripple-backed stablecoin, RLUSD, relies more on the Ethereum network than XRP’s infrastructure. The XRP Ledger has seen a drop in TVL to its lowest level in 2025, signaling decreased engagement with DApps.

XRP faces pressure from competing blockchains like BNB Chain and Solana, with limited activity on XRP Ledger diminishing investor incentives. There is no clear evidence that increased XRP Ledger activity would benefit XRP holders directly. XRP derivatives suggest confidence among bears, while onchain metrics and ETF flows show fading interest, pointing to low bullish momentum in the near term.

Read more at Cointelegraph: XRP Negative Funding Rate Fails To Lure Bullish Traders: Why?