CryptoQuant contributor Arab Chain put Binance’s XRP (XRP) leverage ratio near 0.169 in an Oct. 21 report; XRP traded at $1.06 as of 7:48 p.m. ET Nov. 11 (00:48 UTC Nov. 12).
Arab Chain compared the earlier reading with 0.229 in September in the EconoTimes report on the ratio.
That earlier report described CryptoQuant’s calculation as derivatives open interest divided by XRP held in Binance reserves. Open interest is the value of outstanding derivatives contracts; comparing it with exchange reserves estimates leverage use relative to those holdings.
The ratio does not identify traders’ directional bets or pinpoint why the figure fell; positions closing, lower leverage use and price pressure remain possible explanations. Less leverage can reduce liquidation exposure, although sharp price moves and liquidity still affect that risk.
