XRP News Today: Altcoin Open Interest Hits $47 Billion as Leverage Risks Rise

Open interest in top altcoins has surged to a record high of $47 billion, according to data from Glassnode, indicating a significant rise in speculative positioning and leverage across the market [1]. This increase has been driven by strong price action among major altcoins, with Ethereum recently reaching $4,300—a level not seen since late 2021 [1]. However, the growing use of leverage raises concerns about market vulnerability, as large open interest positions can quickly transition from bullish momentum to selling pressure if market sentiment shifts [2].

Glassnode highlighted that the majority of altcoin supply is currently in profit, increasing the likelihood of profit-taking and potentially triggering downward price corrections. The firm noted that 94.1% of altcoin supply is in positive territory, meaning a sharp price decline could result in significant long position liquidations [2]. This dynamic is particularly pronounced in altcoin futures markets, where high leverage exacerbates price swings and increases overall fragility.

XRP has shown a notable example of this speculative environment. On August 12, XRP rose by 5.3% amid speculation about U.S. inflation data and the potential resolution of Ripple’s ongoing legal dispute with the SEC [3]. Open interest in XRP alone has grown to $5.9 billion, a 15% increase compared to earlier in the month [4]. Despite this bullish movement, technical analysis suggests that profit-taking activity is moderating the asset’s upward momentum, with prices consolidating slightly above the $3.00 support level [3].

Glassnode’s analysis underscores the risks associated with elevated leverage in altcoin futures. The firm warned that a shift in investor sentiment—triggered by macroeconomic data or regulatory updates—could lead to a rapid deleveraging event [2]. Altcoins, typically more volatile than Bitcoin, are especially sensitive to such shifts, making the current market environment more precarious.

The broader cryptocurrency market remains in a bullish phase, with the global market cap reaching $4.03 trillion in late July [5]. Bitcoin has surpassed $118,000 and ether is approaching all-time highs, driven in part by increased institutional interest. Positive developments for XRP, including regulatory clarity and integration with Ethereum sidechains, have also contributed to growing investor confidence [3].

Nevertheless, the rising leverage and concentration of profits across altcoins indicate that the market is in a vulnerable position. A sudden shift in fundamentals—such as a regulatory crackdown or adverse macroeconomic data—could trigger a rapid correction. As altcoin prices continue to rise, investors are being reminded to exercise caution and manage their exposure carefully.

Sources:

[1] https://insights.glassnode.com/the-week-onchain-week-32-2025/

[2] https://cryptoadventure.com/asia-morning-briefing-bitcoins-thin-liquidity-bounce-raises-questions-on-staying-power

[3] https://www.morpher.com/es/insights/market/crypto/XRP

[4] https://www.binance.com/en/square/news/xrp-news

[5] https://www.coinglass.com/ru/news/531907