XRP’s Rally Faces a Reality Check as Spot Trading Activity Dries Up

XRP's price recovery has not revived spot trading. In fact, CryptoQuant data revealed that futures activity is dominating Binance's market by a significant margin. XRP spot trading activity has plunged sharply in recent weeks, even as futures trading takes on a larger role. Data compiled by CryptoQuant shows that combined spot volume across centralized exchanges fell by $1.943 billion between August 26 and October 11. Binance accounted for $429 million of that decline, after its seven-day average spot volume dropped from $597 million to $168 million. Spot Trading Takes a Hit Other centralized exchanges saw a much larger fall. Their combined volume fell from $2 billion to $485.8 million, a reduction of $1.514 billion. This decline was 3.53 times greater than the drop recorded on Binance. The weakness is also visible in Binance’s spot-to-futures volume ratio. The metric compares spot trading volume with futures activity. It fell from 31% on September 26 to just 12.7% on October 11. At current levels, futures volume is roughly 7.9 times spot volume. Fifteen days earlier, it was about 3.2 times higher. The ratio is currently approaching its August 16 low of 11%. At that time, XRP was t...