XRP Leads Crypto Surge With Strong Funding Rates

XRP is emerging as a leader in the crypto market as perpetual funding rates for the token show signs of bullish momentum, even as Bitcoin begins its historically slow third quarter. Crypto traders appear increasingly confident in altcoins like XRP, TRX, and DOGE, driven by strong leveraged demand and positive sentiment.

Perpetual funding rates—charged every eight hours on futures with no expiration—provide insight into investor expectations on future price movements. A positive rate means long positions (traders betting on price increases) are paying shorts (those betting on declines), which generally reflects a bullish bias in the market. When funding rates turn negative, the sentiment skews bearish as shorts pay longs.

According to data from Velo, XRP topped the charts among the ten largest cryptocurrencies by market value with an annualized funding rate nearing 11%. TRON’s native token TRX followed at 10%, and Dogecoin (DOGE) came in at 8.4%. In contrast, market staples like Bitcoin (BTC) and Ethereum (ETH) showed only slight positive funding, reflecting relatively neutral investor positioning.

This trend signals growing optimism around XRP, which currently holds the position of the fourth-largest digital asset. Binance, among other exchanges, reflects significant leveraged interest in XRP – a trend that continues despite ongoing legal uncertainties in the Ripple vs SEC case. Santiment, a crypto analytics platform, also highlighted rising XRP bullish sentiment last week—even as progress toward a resolution with the U.S. Securities and Exchange Commission appears paused.

The strong funding rates affirm that traders are placing substantial leveraged bets expecting XRP to appreciate. This sort of confidence among futures traders often precedes or accompanies price surges, though price stability or reversals are still possible. Notably, XRP’s derivatives market capitalization has grown, hinting that investors are not just optimistic—but also willing to back that outlook with substantial capital.

Tracking trends beyond top-ten tokens, Monero (XMR), known for its privacy features, exhibited an even higher funding rate of over 23%, pointing to aggressive bullish positions. On the flip side, Stellar (XLM) showed a funding rate of 24% in the negative—implying prevailing bearishness.

Bitcoin Enters a Traditionally Weak Quarter

Historically, Bitcoin has faced weaker returns in Q3. Data from Coinglass shows an average quarterly gain of only 5.57% for BTC since 2013 during this period, paling in comparison to the 85% average uptrend in Q4.

At press time, Bitcoin’s price has hovered steadily around $107,000, with no decisive movement. The leading cryptocurrency has traded within a narrow $100,000–$110,000 range for nearly seven weeks. This ongoing consolidation phase is partly due to long-term holders cashing out, which has neutralized the consistent inflow of funds into U.S.-listed spot exchange-traded funds (ETFs). For more on recent ETF dynamics, visit this report.

Despite this stagnation, market watchers are bracing for volatility soon. Analysts are attentive to macroeconomic indicators, with significant focus on U.S. Federal Reserve Chairman Jerome Powell’s speech scheduled for Tuesday and the nonfarm payroll data release on Friday. These events have the potential to spark movement in crypto markets that have recently appeared dormant.

Related: Expert Advice: Sell XRP If You’re Confused

With XRP attracting robust demand in futures markets and Bitcoin entering an uncertain phase, the tug-of-war between altcoin enthusiasm and Bitcoin’s historical patterns will be crucial to watch over the coming weeks. Traders and investors can stay updated with further analysis via crypto insights such as this Crypto Daybook.