The XRP funding rate has been declining after the price peaked above 2025, and this trend has continued into the new year. Between February and March 2026, the majority of XRP funding interest was issued time negativeand this speaks to how investors currently view the cryptocurrency. Analyst Cryptoinsightuk points this out in a recent X post, hinting at what this could mean for digital assets in the future.
The XRP funding rate has not been this low since 2022
Cryptoinsightuks after highlights the interesting XRP trend, which shows that in the last 39 days, 31 of those days have been spent with negative funding rates. This means that only a few days in the month of February saw a positive funding rate. And now the month of March seems to be following the same trend.
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The post also includes the other times the altcoin has seen a trend like this and what ultimately happened. The most recent of these was in 2025, when the funding rate was negative for most of March and April.
What followed, however, was one massive XRP price rallyThis ultimately led to levels not seen since 2018. While this didn’t send the XRP price to new all-time highs, it did push it to new annual highs, a rally that took investors by surprise.
Going further back in time, the crypto analyst points out that another period in which a similar trend was observed took place in 2022. This came with the crash of the FTX crypto exchange as the market succumbed to negative news. Ultimately, however, this trend would mark the bottom for XRP, and the price began to rise the following year.
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Judging from past performance, it’s possible that the same trend marks another low here. If this happens, it won’t be long before the XRP price starts rising again. Furthermore, such low funding rates suggest that more traders are shorting, making this a good time for an upswing.
According to facts from Coinglass, funding rate isn’t the only metric that has suffered. The XRP open interest has also taken a nosedive since 2025, showing that traders are no longer participating in the market as much as they used to. Daily trading volume has also suffered, from a peak of $78.85 billion at the end of 2024 to less than $4 billion at the time of this report.
Featured image of Dall.E, chart from TradingView.com