In an unprecedented year-to-date development, open interest in XRP-linked futures ascended past the $1.1 billion threshold within the last day. This astonishing leap surpasses the previous watermark of $1 billion achieved only last week. Concurrently, XRP tokens witnessed an upsurge, intensifying as much as 6%. This occurs despite a static performance from premier cryptocurrencies, encapsulating two consecutive days of impressive gains.
These tokens flirted with the 80 cents threshold, equaling last week’s pinnacle before witnessing a mild retraction. Corresponding with this intriguing performance, open interest—definitionally being unsettled futures contracts—experienced a 21% propulsion since Tuesday. Traditionally, a buoyant open interest denotes a greater stake in assets like tokens or stocks. This amplification typically points towards an infusion of fresh capital into a financial market, which under normal circumstances, predicts the perpetuation of the ongoing trend.
The lion’s share of these positions, worth a staggering $443 million, reside on the prominent crypto exchange, Binance. Trailing behind them steadfastly is Bitget, holding assets worth $250 million.
This wave of interest towards XRP tokens is not an isolated incident. Rather, it makes more sense when viewed from the pivot of last week’s U.S. legal decision. In this milestone judgement, it was ruled that the exchange of XRP did not equate to investment contracts’ sale. The ripple effect (pun intended) of this court issuance was nothing short of electrifying. XRP surged nearly 96%, with trading volumes bloating to the ballpark of billions of dollars in the succeeding moments.
Simultaneously, two leading cryptocurrencies, Bitcoin and ether, regained their foothold above their respective support levels, set at $30,000 and $1,900. This recovery was observed in Asian markets during afternoon trades on Wednesday, right after a brief fall believed to be caused by traders securing profits from the previous day’s high stakes.
While this surge in XRP is undoubtedly exciting, it calls into question whether this is a bubble waiting to burst or sustainable growth. Only time will tell if these levels of attention and investment can be maintained.
Source: Coindesk
