2023 XRP Futures set new open interest record

2023 XRP Futures set new open interest record

The Rising Open Interest in XRP Futures Signals Growing Confidence in the Blockchain Industry

According to data from crypto futures trading and information platform Coinglass, open interest on XRP futures crossed the 24-hour $1 billion mark set last week and cemented a new record high for 2023. As of press time, Coinglass data shows XRP open interest at 1.43 XRP, equivalent to $1.13 billion, a more than 20% climb in the last 24 hours.

The blockchain industry continues to gain momentum as open interest in XRP futures reaches new heights. Open interest refers to the total number of outstanding contracts in the market. When open interest increases, it indicates a growing number of traders placing bets on the asset. This surge in open interest signals increased confidence in XRP and suggests that the current positive market sentiment may persist for some time.

Binance, one of the leading cryptocurrency exchanges, holds the largest share of the current open interest, accounting for 39.98% of the total. This amounts to approximately $453.36 million (573.12 million XRP). Following closely are Bybit and Bitget, with 26.4% and 23.16% of the open interest, respectively. CoinEx, on the other hand, has the lowest share, with only 0.08%, equivalent to $930.45K (1.18 million XRP).

The price of XRP has also seen significant growth in recent days, reaching $0.7921, according to CoinMarketCap. This represents a 5.13% increase in the past 24 hours and an impressive 67% surge over the past week. One of the primary drivers behind this price appreciation is a recent court ruling in favor of Ripple Labs Inc., the company behind XRP.

XRP Futures Record Follows Court Ruling Against the SEC

Last week, Judge Analisa Torres of the District Court in the Southern District of New York ruled that XRP is not a security, concluding years of a legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, accusing the company of running an unregistered securities offering. According to the SEC, Ripple should have registered its XRP sale as a securities offering. The company raised over $1.3 billion at the time.

The recent court ruling that XRP is not a security has had a profound impact on the cryptocurrency’s market dynamics. The ruling, delivered by Judge Analisa Torres, settled a long-standing legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The SEC had filed a lawsuit against Ripple in December 2020, alleging that the company conducted an unregistered securities offering through its sale of XRP. The SEC argued that Ripple should have treated the sale as a securities offering, as it raised more than $1.3 billion.

While the court ruled in favor of Ripple by classifying XRP as a non-security, it also found the company in violation of federal laws for conducting an institutional sale of the tokens. This partial victory for Ripple has nevertheless had a significant positive impact on the XRP market.

Following the court ruling, XRP experienced a remarkable price surge of 98%, reaching $0.93. The market capitalization of XRP also soared to $46.1 billion, gaining over $21 billion in value. However, it is worth noting that SEC Chairman Gary Gensler expressed disappointment in the court’s decision, stating that the SEC is currently assessing the ruling.

With the lawsuit now behind them, Ripple is hopeful that US banks and other financial institutions will be more open to utilizing its On-Demand Liquidity (ODL) product for cross-border transactions. The ODL product offers a fast and cost-effective method for completing such transactions. Ripple had faced some setbacks in its business operations, including the loss of its partnership with international money transfer giant MoneyGram, following the SEC’s lawsuit in 2020.

Nevertheless, Ripple advises caution to its community members, warning them of potential fraudsters and scammers seeking to exploit the positive sentiment surrounding Ripple and XRP. CTO David Schwartz emphasized that there are no special offers, giveaways, or airdrops initiated to celebrate the recent legal victory.

In conclusion, the blockchain industry, as exemplified by the XRP market, is witnessing significant developments. The rising open interest in XRP futures reflects growing confidence in the cryptocurrency and the blockchain technology that underpins it. The recent court ruling in favor of Ripple further strengthens the industry’s position and opens new possibilities for the adoption of blockchain-based solutions in the financial sector. However, caution is necessary to avoid falling victim to fraudulent activities associated with this optimistic sentiment.