Since November 2021, investor interest in Ripple’s digital coin, XRP, has increased dramatically, breaking previous records. Data from CoinGlass shows that as of July 20, the open interest for XRP futures contracts had risen to an astounding $1.2 billion.
Following a favourable court decision in the Ripple v. Securities and Exchange Commission (SEC) case, there has been a spike in open interest, which is the total number of outstanding futures contracts that have not yet been settled.
In futures markets, open interest is a critical indicator that frequently sheds light on the movement of capital and the intensity of a certain price trend.
With $357 million in open interest, Binance is in the lead among several cryptocurrency exchanges. Bitmex is last with open interests of $7 million, followed by Bitget and OKX with open interests of $198 million and $71 million, respectively. The increase in open interest indicates that investors are becoming more confident in the aftermath of the recent court decision that favoured Ripple.
This notable increase in open interest in XRP futures coincides with recent praise for cryptocurrency advocates in Congress from Ripple CEO Brad Garlinghouse. Garlinghouse vented his anger at the regulatory body’s overreach on Twitter on July 23 in response to the SEC’s intention to appeal the verdict in Ripple’s favour.
The SEC’s approach to the cryptocurrency market, according to the CEO of Ripple, was overly enforcement-focused, leaving customers defenceless and frequently dealing with the consequences in bankruptcy court.
The highly followed court battle between Ripple and the SEC will have a significant impact on the overall crypto market. A recent U.S. District Court decision, which concerned whether XRP should be categorised as a security, mostly sided with the defendants in the case.
At the time of publication, XRP is remaining stable at $0.74, experiencing a moderate 0.5% increase, or a gradual ascent for the day. With a healthy $1.7 billion in 24-hour trading activity, it has surpassed a market value of $39 billion.
