XRP is seeing renewed momentum across both its spot and derivatives market following its ongoing price rally that has seen its price record a nearly 20% surge in a day.
This bullish momentum has been specifically noticed in the XRP derivatives market on Binance as latest data from crypto analytics platform CryptoQuant shows that funding rates have just retested their 2025 high.
XRP bull traders take over
With XRP back in demand, the data shows that the XRP funding rate on Binance has surged sharply to 0.0101 as of August 21, 2026. Notably, this marks its highest level since October 2025.
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While funding rates typically represent the payments exchanged between long and short traders in perpetual futures contracts, the metric has turned extremely bullish for XRP, as it indicates growing demand for long positions against shorts. When funding rates surge higher and remain positive, it generally indicates that demand for long positions is outpacing demand for shorts.
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As such, the surge in the XRP funding rate suggests that traders are becoming more confident in XRP’s potential upside following the sudden price breakout.
XRP sees unusually strong demand
The sharp increase in the XRP futures metric comes as XRP suddenly turns bullish, surging rapidly to trade past its multi-week high around $1.30.
The price surge coinciding with the rising funding rate reflects a notable shift in sentiment among XRP derivatives traders, especially on Binance.
The data further shows that the funding rate has soared significantly above its 30-day moving average, indicating that XRP is seeing an unusually strong demand for leveraged long positions.