Interest in XRP futures skyrocket: What caused it?

XRP

IMPORTANT POINTS:

  • Open interest on XRP futures contracts has reached an all-time high since November 2021.
  • The recent favorable court decision in Ripple’s case against the SEC has strengthened market sentiment towards XRP.
  •  XRP maintains its value at $0.73, with a slight increase of 0.5% and a 24-hour trading volume of $1.7 billion.

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Investor fascination with Ripple’s digital token XRP has taken a considerable leap, reaching a record high not seen since November 2021. According to data from CoinGlass, as of July 20, open interest in XRP futures contracts had reached a staggering $1.2 billion.

This growth in open interest, which represents total futures contracts pending settlement, comes after a favorable court ruling in Ripple’s case against the United States Securities and Exchange Commission (SEC).

Open interest is a crucial metric in the futures markets, often providing insight into the flow of money and the strength of a given price trend.

Interest in Futures

In the universe of cryptocurrency exchanges, Binance is in the lead with the highest open interest, reaching $357 million. Bitget and OKX follow with open interests of $198 million and $71 million respectively, while Bitmex trails behind with $7 million. The increase in open interest indicates growing confidence among investors following the recent court ruling in favor of Ripple.

This huge jump in XRP futures open interest comes as Ripple CEO Brad Garlinghouse recently praised cryptocurrency advocates in Congress. Faced with the SEC’s decision to appeal the ruling in Ripple’s favor, Garlinghouse expressed his frustration with the regulator’s overreaching on Twitter on July 23.

The Ripple CEO argued that the SEC’s approach to the cryptocurrency industry was too focused on law enforcement, leaving consumers unprotected and often dealing with consequences in bankruptcy court.

The closely watched legal battle between Ripple and the SEC has major implications for the broader cryptocurrency industry. The case centered on whether XRP should be classified as a security, with a recent United States District Court ruling in favor of the defendants mostly.

As of this writing, XRP is holding steady at $0.73, up a modest 0.5% similar to a mild rally during the day. It has posted a solid 24-hour trading volume of $1.7 billion, and its market capitalization exceeds $39 billion.