Key Notes
- A 59% reduction in XRP futures open interest and weakening funding rates, signaling reduced trader confidence.
- Social sentiment around XRP has moved into the “fear zone,” reflecting the most negative outlook since October.
- XRP price continues to trade under pressure following the latest Fed rate cut, drifting toward key support near $2.00.
While the XRP
XRP
$1.99
24h volatility:
3.7%
Market cap:
$120.02 B
Vol. 24h:
$4.02 B
price remains under continuous selling pressure, it turns out that the transaction fee on the XRP Ledger (XRPL) has also collapsed by a massive 90%, over the past year.
The open interest in XRP has experienced a major sell-off during the recent price correction.
XRP Transaction Fee Hits Lowest Since December 2020
Daily transaction fees on the XRP Ledger have declined sharply since the start of the year, according to data from Glassnode.
The network is currently generating roughly 650 XRP in fees per day, down from 5,900 XRP on February 9. Glassnode noted that this represents an 89 percent drop, with fee levels now at lows last seen in December 2020.
The drop in transaction fee also coincides with a significant decline in XRP futures open interest.
As per on-chain data, the open interest has tanked to 0.74 billion XRP from 1.75 billion XRP in early October, a major 59% reduction.
Funding rates have also slipped to 0.001 percent from 0.01 percent on a seven-day moving average basis. This highlights a weakening confidence among derivatives traders in XRP’s near-term recovery prospects.
This is despite the strong performance and inflows seen by XRP ETFs in recent times.
The overall sentiment indicators show social discussions about XRP moving into the “fear zone,” marking the highest level of negative sentiment since October.
Some analysts, however, argue that such conditions have historically preceded strong upside reversals in XRP’s price.
Where’s the XRP Price Heading Next?
Following the FOMC announcement of a 25 bps Fed rate cut yesterday, the XRP price continues to face heightened volatility.
At the time of writing, it is trading 2.67% down while testing the crucial support at $2.0, highlighting instability in the near term.
Popular market analyst ChartNerd highlighted the technical indicators showing the Relative Strength Index in a compressed range, while the Stochastic RSI has moved into oversold territory.
The analyst noted that additional pullbacks toward the $1.90 support level would be viewed as a constructive development for market positioning.
next
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bhushan Akolkar on X
Source: https://www.coinspeaker.com/xrp-transaction-fee-crashes-90-what-happens-to-the-price-next/
