XRP’s Estimated Leverage Ratio on Binance Falls to Three-Month Low Near 0.14

XRP’s estimated leverage ratio on Binance was about 0.14, a three-month low, with XRP trading near $1.09.

The ratio reflects leverage use relative to Binance’s available reserves and is used to assess activity risk in derivatives markets. A lower reading suggests traders are relying less on borrowed funds.

The decline could reflect positions closing or reduced willingness to use leverage amid price pressure. The reading does not identify which explanation applies.

Lower leverage may reduce the market’s sensitivity to sharp price moves and the chance of large liquidations triggered by excessive leverage. It does not eliminate liquidation risk; price movements and liquidity remain factors.