- Open interest on XRP futures surpasses $1.1 billion, marking a record high for 2023.
- The surge in interest followed a US court ruling that XRP sales on exchanges are not investment contracts.
Unprecedented Open Interest in XRP Futures Reflects Market Optimism
Open interest in XRP futures has reached a new peak, surpassing $1.1 billion in the last 24 hours. This milestone comes on the heels of a similar feat last week when open interest touched the $1 billion mark, marking a record high for the year.
XRP tokens exhibited an impressive performance, spiking by 6% for the second consecutive day, while the broader cryptocurrency market remained relatively stable. At its peak, XRP soared to 80 cents, aligning with last week’s high, before retracting slightly.
The Rising Tide of Open Interest: A Vote of Confidence
Open interest, a measure of unsettled futures contracts, has escalated by 21% since Tuesday. An increase in open interest typically signals a growth in bets on a particular asset, be it tokens or stocks, indicating an influx of fresh capital into a financial market. Such a trend usually suggests an expectation that the current market trajectory will persist.
Significantly, the bulk of these positions, totaling $443 million, are consolidated on the crypto exchange Binance, with Bitget following at $250 million.
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The upswing in interest in XRP tokens is believed to be a consequence of last week’s U.S. court decision. The ruling established that the sale of XRP on exchanges does not qualify as investment contracts. Following the court order, XRP witnessed a dramatic surge, rising by as much as 96%, with trading volumes skyrocketing into the billions of dollars in the aftermath.
Meanwhile, Bitcoin and Ether managed to claw back above support levels at $30,000 and $1,900 respectively, during Wednesday afternoon trading in Asia. This recovery followed a brief dip as traders likely cashed in profits from the recent uptrend on Tuesday.
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