Ripple (XRP) Hits Record-Low Exchange Liquidity while Mutuum Finance (MUTM) Sees Investor Growth

Mutuum Finance Borrowing Protocol Grows as XRP Liquidity Falls

The total dollar value of XRP held on Binance has seen a sharp drop, falling to about $3.9 billion from more than $10 billion a year ago. The decline comes amid a prolonged downturn in XRP’s price, with the token losing over 60% of its value and trading below $1.50. As XRP grapples with this reality, Mutuum Finance (MUTM) has continued to expand its community, with its tokenholder base approaching 19,100 investors.

XRP Liquidity on Binance Falls to Record Low

Data from CryptoQuant shows a sharp decline in the value of XRP held on Binance. As of March 7, XRP reserves on the exchange are valued at about $3.9 billion, a steep drop from the more than $10 billion recorded during the January and July 2025 peaks. Since those highs, the XRP token price has fallen by more than 60%. 

When fewer tokens remain on trading platforms, the amount immediately available for sale decreases, which can sometimes help ease selling pressure. However, that effect has not yet translated into stronger price performance for XRP. The token is trading near $1.40 after a steep decline from its mid-2025 high above $3.40. XRP remains in a bearish structure, trading below its 100-day moving average as well as the 50-day and 200-day averages. Earlier this year, XRP briefly slipped below $1.20 before recovering into the $1.30–$1.45 range, where it is now consolidating.

For momentum to shift meaningfully, XRP would first need to reclaim the $1.50 level. A stronger recovery would likely require a move toward the $1.90–$2.00 zone. As XRP consolidates, growth is emerging in other areas of the crypto market.

Mutuum Finance Growth

Mutuum Finance (MUTM) has grown its token holder count to over 19,080. Meanwhile, protocol funding exceeds $20.78 million. The token is currently priced at $0.04. Mutuum Finance is addressing capital inefficiency within the crypto market through its borrowing mechanism.

How Borrowing Works 

Borrowing on Mutuum Finance enables users to unlock liquidity without selling their crypto holdings. The protocol employs an overcollateralized model, requiring borrowers to deposit collateral exceeding the value of the loan. This ensures that loans remain fully backed and mitigates risk for lenders. For example, with a 150% overcollateralization requirement, a user borrowing $10,000 in USDC would need to provide $15,000 worth of another asset, such as ETH, as collateral. While the ETH serves as collateral, it continues to track price movements in the market, allowing the user to benefit from potential gains in the asset's value.

When a loan is initiated, the protocol issues a debt token recording the borrowed amount and the accrued interest. Borrowing limits are determined by the collateral value and a Stability Factor, which adjusts for asset volatility and helps maintain safe borrowing thresholds. 

Safe-Mode Borrow Presets in Mutuum Finance

To further simplify borrowing, Mutum Finance has rolled out  Safe-Mode Borrow Presets. These presets are structured around different risk levels, i.e., Safe, Balanced, and Aggressive, each targeting a specific Stability Factor (SF). For example: 

• Safe: Targets a Stability Factor ≥ 2.0

• Balanced: Targets a Stability Factor around 1.7

• Aggressive: Targets a Stability Factor near 1.4

The team has released a demo video illustrating how the feature works to provide automated risk management.

Variable and Stable Borrowing Rates 

Mutuum Finance allows users to select between variable and stable interest rates when borrowing. Variable rates adjust in real time according to supply and demand across the protocol’s lending pools. This option can benefit short-term borrowers who anticipate favorable market conditions or plan to repay quickly. Stable rates, on the other hand, remain fixed for the duration of the loan, offering predictable interest payments.

While XRP sees shrinking exchange supply and stagnant prices, Mutuum Finance (MUTM) has grown its token holder base to nearly 19,100. The project enhances capital efficiency by allowing borrowers to access liquidity through overcollateralized loans while their collateral continues to benefit from market gains.