The Crypto Basic

South Korean police have arrested three individuals and secured an Interpol Red Notice for a fourth suspect over an alleged XRP investment scam.

According to a report by Yonhap News Agency, the Seoul Metropolitan Police Agency (SMPA) accused the group of operating a fake cryptocurrency investment platform that lured investors with promises of guaranteed returns before disappearing with their digital assets.

Investigators said the suspects launched the fraudulent website Fxrpntwork.com in October 2025 and persuaded 71 investors to transfer 3.4 million XRP, worth 12.3 billion won ($8.6 million) at the time.

To attract victims, the platform promoted itself through blog posts, online news articles, and YouTube videos. It claimed to offer full principal protection and fixed monthly returns of 1.5% to 1.8%, promises that authorities say were entirely false.

Fraudsters Exploited Interest in Flare’s FXRP Launch

Police said the operators boosted the scheme’s credibility by impersonating legitimate projects within the XRP ecosystem, particularly Flare Network, capitalizing on heightened interest surrounding its FXRP launch in September 2025.

For context, Flare enables users to lock native XRP while receiving an equivalent amount of FXRP on the Flare network. This mechanism allows XRP holders to participate in decentralized finance (DeFi) applications and earn yields without selling their original assets.

Authorities said the suspects instructed victims to transfer their XRP from South Korean cryptocurrency exchanges to designated wallets through an overseas exchange. Once the transfers were complete, the operators shut down the website and disappeared with the funds.

Investigation and Subsequent Arrests 

The Seoul Metropolitan Police Agency launched its investigation in October 2025 after receiving intelligence about a rise in cryptocurrency-related fraud.

Investigators quickly traced the movement of the stolen digital assets and froze the suspects’ cryptocurrency wallet within three days of receiving the initial report, preventing additional investor losses.

Authorities later arrested the alleged ringleader after he returned to South Korea from overseas. They also apprehended two other suspects while they attempted to evade arrest in different parts of the country, with one already referred to prosecutors.

Meanwhile, police secured an Interpol Red Notice for a fourth suspect to locate and provisionally arrest the individual pending extradition proceedings.

XRPL Validator Warns Community About Emerging DeFi Scams

Following the arrests, prominent XRP Ledger dUNL validator Vet urged the XRP community to remain vigilant as decentralized finance activity expands on the XRPL.

While commending the South Korean authorities for their swift action, Vet cautioned that the growth of new financial applications on the XRP Ledger could also create opportunities for fraudsters. According to him, upcoming XRPL lending protocols may deliver legitimate innovation but could also inspire fake staking, lending, and yield-generation schemes designed to exploit unsuspecting investors.

Vet encouraged XRP holders to verify the authenticity of investment platforms before transferring funds, emphasizing that scammers often exploit excitement surrounding new ecosystem developments. 

XRP whale activity on Binance has fallen sharply, with both inflows and outflows declining, according to CryptoQuant analyst PelinayPA.

The trend suggests large investors are staying on the sidelines instead of actively accumulating or selling the token. The analyst said transaction counts across major value bands have dropped significantly, pointing to weaker buying interest amid lower selling pressure.

XRP Whale Activity Drops Across the Board

According to the analysis, large XRP withdrawals from Binance have declined considerably from 2024 and 2025 levels. The slowdown is most noticeable in transfers between 100,000 and 1 million XRP, as well as transactions above 1 million XRP.

Large exchange outflows are often seen as a sign that investors are moving assets into private wallets for long-term holding. However, PelinayPA said the current decline is not a bullish accumulation signal. That’s because whale outflows themselves have become unusually rare.

The same pattern is visible on the inflow side. Large XRP deposits to Binance have also dropped sharply, suggesting whales are not moving tokens to exchanges to sell. As a result, near-term selling pressure appears much lower than in previous market cycles.

Market Stuck in a Waiting Phase

With both exchange inflows and outflows declining, PelinayPA said there is little evidence of either aggressive accumulation or large-scale distribution.

Instead, the analyst described the market as being in a “waiting phase”. Lower liquidity and weaker trading activity are making it harder for XRP to establish a clear trend in either direction.

One of the clearest signs is the sharp decline in transactions exceeding 1 million XRP. Both inflows and outflows in this category have fallen, suggesting major holders are largely inactive.

Retail Traders Drive Most Activity

Despite weaker whale participation, transactions between 1,000 and 10,000 XRP still account for most network activity. This suggests retail traders remain the market’s main participants.

However, PelinayPA noted that previous XRP bull markets were driven largely by high-volume whale activity rather than retail flows. Until institutions or large holders return with fresh capital, the analyst expects XRP to remain in a relatively quiet, range-bound market.

XRP Open Interest on Binance Falls to Lowest Since 2024.

Meanwhile, XRP futures open interest on Binance has dropped to its lowest level since 2024, falling to about $370 million, according to CryptoQuant analyst Arab Chain. The decline appears specific to XRP, as Binance’s broader derivatives market remains active.

The drop suggests traders are closing leveraged XRP positions amid uncertainty following the U.S. Federal Reserve’s latest policy decision. While lower open interest doesn’t signal a bullish or bearish trend, it reflects a more cautious market, reducing liquidation risk but also indicating weaker confidence.

Arab Chain noted that a rebound in both XRP’s price and open interest would suggest fresh capital is returning, while continued declines would signal ongoing trader caution.

The XRP Ledger (XRPL) has experienced a noticeable increase in stablecoin activity as Ripple’s RLUSD, the largest stablecoin on the network, expands its dominance.

According to RWA.xyz, a leading provider of real-world asset (RWA) data, stablecoin transfer volume on the XRP Ledger has risen 10.8% over the past 30 days to $4.28 billion.

The increase suggests that more people and businesses have begun actively using the network to move funds. Notably, rising transfer volume usually points to stronger network activity, as it shows that stablecoins are changing hands more often instead of sitting idle in wallets. 

Such activity can improve liquidity across the ecosystem, support decentralized finance applications, and encourage developers and institutions to build on the XRP Ledger. 

It also confirms the network’s role as a blockchain designed for payments and tokenized assets, as higher transaction activity shows growing real-world use.

RLUSD Continues to Drive Stablecoin Growth

The rise in transfer volume comes as the XRP Ledger’s stablecoin market continues to grow. Over the same 30-day period, the total stablecoin market capitalization on the network grew 12.27% to $926.11 million.

Expectedly, RLUSD remains the market leader. Ripple’s stablecoin now has a market capitalization of $872 million on the XRPL, which gives it a 94% share of the network’s entire stablecoin market.

The stablecoin has made impressive progress since Ripple launched it in December 2024. While the company initially focused on Ethereum, it has gradually shifted its attention to the XRP Ledger by reducing RLUSD supply on Ethereum and increasing it on XRPL. 

Ripple has achieved this through large token burns on Ethereum alongside substantial minting activity on the XRP Ledger.

XRPL Overtakes Ethereum in RLUSD Supply

Ripple’s strategy has changed the balance of RLUSD across the two networks. The continued burns on Ethereum and increased minting on XRPL allowed the XRP Ledger to overtake Ethereum in RLUSD supply last month, in June.

Over the past three months, Ripple burned $1.15 billion worth of RLUSD and minted about $668 million on Ethereum. During the same period, it burned $577 million worth of RLUSD on the XRP Ledger while minting $1.2 billion on the network.

As a result, the XRP Ledger now holds 55% of RLUSD’s total supply, which currently stands at around $1.58 billion.

XRPL Stablecoin Holder Count Also Moves Higher

The XRP Ledger has also continued to attract more stablecoin users, although growth has been more modest than the increase in transfer volume and market capitalization. Over the past 30 days, the number of stablecoin holders on the network rose 1.03% to 60,200.

Besides RLUSD, several other stablecoins contribute to the ecosystem. These include BBRL, Braza’s Brazilian Real-backed stablecoin with a market capitalization of $15.1 million, and USDB, another Braza-issued stablecoin valued at $12 million. 

The network also supports EUR CoinVertible (EURCV) from Societe Generale-FORGE, which has a market capitalization of $11.3 million, and USDC from Circle, which currently has a market capitalization of $5.6 million on the XRP Ledger.

Notably, Circle improved the network’s stablecoin ecosystem when it launched native USDC on the XRP Ledger in June 2025.

XRP ETFs have reached a new milestone, setting a record for cumulative net inflows despite XRP’s price struggles extending into the 12th month. 

Specifically, on July 27, the ETF products pushed their cumulative net inflows to $1.50 billion, marking a new all-time high. The increase came after the funds recorded $592,470 in net inflows that day. 

Before this, cumulative inflows had remained unchanged at $1.49 billion for three consecutive trading days, with the ETFs posting no net flows from July 22 through July 24 at the close of the previous week.

Early Momentum Gave Way to Slower but Steady Growth

The latest milestone represents the first time XRP ETFs have accumulated $1.50 billion in net inflows since they began trading in November 2025.

Notably, the products attracted capital quickly after launch, reaching $1 billion in cumulative inflows by mid-December 2025, less than a month after the first spot XRP ETF entered the market.

This early period saw strong investor demand. Daily inflows regularly exceeded $20 million, with the ETFs attracting $164 million on Nov. 24, 2025, and an even larger $243 million on Nov. 14, 2025.

The pace changed after cumulative inflows climbed above $1.2 billion in early January 2026. On Jan. 7, 2026, the ETFs recorded their first daily net outflow, with $40.8 million leaving the funds. 

Although inflows picked up again afterward, they slowed enough for cumulative inflows to fall to $1.17 billion by the end of January 2026.

Investor Interest Remained Strong as XRP Lost Value

The ETFs recovered after January and continued to attract fresh capital. While a few trading sessions ended with net outflows, inflows outweighed outflows on most days. 

This consistent demand helped cumulative inflows climb to $1.30 billion in late April 2026, before rising again to $1.40 billion in May 2026. The funds then spent the next two months working toward another milestone before finally reaching $1.50 billion. 

This progress came even as XRP remained under heavy selling pressure. During the same period, the token lost 70% of its value from its all-time high of $3.6.

Monthly XRP ETF Flows Remain Mostly Positive in 2026

The trend has remained largely positive throughout this year despite XRP’s weak price performance. While the cryptocurrency has fallen 41% since the beginning of the year, XRP ETFs have continued to record positive monthly inflows almost every month.

The funds brought in $15.59 million in January 2026, followed by $58.09 million in February 2026. They then recorded their first monthly net outflow in March 2026, when investors pulled $31.16 million from the products. So far, March remains the only month to finish with negative net flows.

Since then, the ETFs have returned to positive territory every month. They recorded their strongest monthly performance of the year in May 2026, attracting $131.94 million in net inflows. 

Overall, the funds have added $329 million in cumulative net inflows during 2026, helping lift their overall cumulative inflows to the new record of $1.50 billion.

Bitwise Leads ETF Rankings

Among all XRP ETF issuers, the Bitwise XRP ETF now holds the largest share of cumulative inflows. The fund has attracted $500 million, giving it 33% of the total $1.50 billion accumulated since launch. It recently moved ahead of the Canary Capital XRP ETF, despite entering the market after Canary.

The Canary Capital XRP ETF now ranks second with $466.97 million in cumulative net inflows, accounting for 31% of the overall total. Franklin Templeton’s XRPZ ETF follows in third place with $422.45 million in cumulative inflows, while Grayscale’s XRP ETF (GXRP) ranks fourth after bringing in $131.46 million.

The 21Shares XRP ETF (TOXR) remains the only product still in negative territory. Since its launch, it has recorded -$20.06 million in cumulative net flows.

The XRP Open Interest (OI) on Binance has recently crashed to its lowest levels since 2024, indicating a decline in derivatives activity.

XRP remains under selling pressure as its ongoing downtrend stretches into the twelfth month. Meanwhile, alongside the weak price performance, new derivatives data points to another sign of fading market activity. 

According to a recent report from CryptoQuant analyst Arab Chain, Binance has recorded the lowest XRP Open Interest since 2024.

Arab Chain revealed that Open Interest for XRP contracts on Binance has dropped to about $369.6 million, the lowest level seen since 2024. 

This decline comes even though Binance continues to post high trading volumes across its overall derivatives market. The trend suggests that the slowdown is limited to XRP contracts.

Traders Cut Back on Leveraged XRP Positions

According to Arab Chain, the drop in XRP Open Interest shows that traders are closing positions and using less leverage. 

Most market participants have reduced their exposure as uncertainty continues to affect market sentiment instead of opening new leveraged trades or keeping existing ones.

He also called attention to the uncertainty that followed the Federal Reserve’s latest monetary policy decision. He believes the decision encouraged traders to become more cautious, leading many to reduce their leveraged exposure to XRP.

Arab Chain stressed that the decline only affects XRP contracts and does not reflect the overall performance of Binance’s derivatives market. While trading activity remains high across the exchange, interest in leveraged XRP positions has dropped.

Why the Decline in Open Interest Matters

Arab Chain pointed out that falling Open Interest does not automatically indicate either a bullish or bearish outlook. However, it simply shows changes in market participation and the amount of leverage traders are willing to use.

Notably, lower leverage can reduce the risk of liquidations and limit sharp price swings caused by heavily leveraged positions. Meanwhile, it can also show that fewer traders are interested in keeping existing XRP positions or opening new ones under current market conditions.

Arab Chain noted that a rise in Open Interest alongside a recovery in XRP’s price could indicate that speculative trading is returning and fresh capital is flowing back into XRP derivatives. 

However, if Open Interest continues to fall, it could suggest that traders remain cautious despite the strong trading volumes across Binance’s broader derivatives market.

XRP Technical Indicators Still Favor the Bears

Meanwhile, XRP’s short-term outlook remains weak. The cryptocurrency is currently trading at around $1.0755, posting a modest 0.3% gain over the past 24 hours. Even with this slight increase, the overall market structure continues to favor the bears.

XRP remains below the 20-day Exponential Moving Average (EMA20) at $1.0947, the 50-day Exponential Moving Average (EMA50) at $1.1287, and the 200-day Exponential Moving Average (EMA200) at $1.4104. This shows that bearish momentum still controls the daily chart.

For now, the first support area sits between $1.07 and $1.08. This zone lines up with both the daily S1 pivot and the lower Bollinger Band, which makes it an important level for buyers to defend.

Below that, $1.00 remains the key psychological support level. If XRP drops below it, the price could fall toward $0.93, with $0.80 becoming the next downside target if selling pressure continues to build.

On the upside, buyers first need to push XRP back above the $1.10 to $1.11 range, where the daily pivot meets the EMA20. After that, the next major hurdle is the EMA50 at $1.1287, which sits close to the upper Bollinger Band at $1.1388. XRP will need stronger buying momentum to break above those levels and improve its short-term outlook.