XRP Open Interest Drops 75%, But Stablecoin Fragmentation Intensifies XRP Bridge Demand

XRP open interest has also decreased by approximately 75% from its peak, indicating continued deleveraging of leveraged positions. However, several analysts point out that the trend of global banking institutions launching their own stablecoins is creating a structural demand for XRP as a neutral bridging asset; Evernorth Holdings has filed for a listing with the U.S. Securities and Exchange Commission (SEC), and institutional developments have not halted despite the decline in coin price.

Current XRP Market Situation: Deleveraging and Macro Pressures Resonating

On-chain analyst Xaif Crypto notes that XRP open interest has fallen about 75% from its peak, with Binance currently being the only derivatives exchange still relatively active. Leveraged traders have largely exited the market, but buying based on fundamental confidence has not effectively filled the gap, and short-term momentum remains weak.

On the macro level, escalating US-Iran tensions, rising oil prices, and weakening Fed rate cut expectations are suppressing overall risk assets. Analysts believe that the gap between falling coin prices and the expansion of institutional infrastructure will be a core debate in the market by Q2 2026.

Stablecoin Fragmentation Theory: Structural Support for XRP’s Bridging Role

Senior family office expert Jake Claver pointed out on X that each bank issuing its own stablecoin is akin to creating a new currency that needs to communicate with all others. More stablecoins mean more isolated liquidity pools; the greater the isolation, the more urgent the need for a neutral bridging layer. He believes this fragmentation trend is not a threat to XRP’s competition but rather a challenge Ripple aimed to address when developing XRP—interoperability issues.

Versan Aljarrah, founder of Black Swan Capitalist, sees XRP holders as early movers in the new payment system infrastructure, occupying a foundational position in the restructuring of financial architecture.

Logic Chain: How Stablecoin Fragmentation Boosts XRP Demand

Banks issuing their own stablecoins: Increased number of independent liquidity pools, higher cross-pool settlement costs

Cross-pool settlement requires neutral assets: Bridge tokens without sovereign backing become the preferred technical solution

XRP’s design focus: Real-time cross-border settlement and liquidity bridging, highly aligned with the above needs

Uncertainty in transformation: Analysts note that whether this can be translated into quantifiable on-chain demand remains to be validated

Evernorth SPAC Application: Institutional Moves Unaffected by Price Decline

Institutional activities related to XRP continue to advance. On March 18, Evernorth Holdings filed an S-4 document with the SEC, planning to merge with special purpose acquisition company (SPAC) Armada Acquisition Corp. II and list on Nasdaq under the ticker XRPN.

Evernorth currently holds 473 million XRP, valued at approximately $685 million at current market prices, supported by Ripple, SBI Holdings, and Pantera Capital. This move demonstrates that institutional confidence in XRP’s long-term positioning remains intact, contrasting sharply with current market sentiment.

FAQs

How does bank stablecoin fragmentation support the theory of XRP’s bridging demand?

When many banks issue their own stablecoins, cross-institutional settlement requires a neutral bridging asset. Analysts like Jake Claver believe XRP’s design was created to solve this interoperability issue, and the fragmentation trend logically increases potential structural demand for XRP. However, whether this theory can be translated into measurable on-chain demand remains a core market question to be validated.

What does Evernorth Holdings’ SPAC application mean for XRP?

Evernorth owns 473 million XRP and plans to go public on Nasdaq, supported by Ripple, SBI Holdings, and Pantera Capital. This institutional move continues despite the declining coin price, indicating that long-term investors’ confidence in the XRP ecosystem has not yet exited.

How should the 75% drop in open interest be interpreted?

A significant decline in open interest usually indicates deleveraging of leveraged speculative positions, suggesting short-term technical weakness. Currently, derivatives trading remains relatively active only on Binance, and faith-based buying has not yet filled the demand gap left by deleveraging, putting short-term technical pressure on the market.