XRP Open Interest Surge Suggests Continued Investor Interest in the Cryptocurrency

A surge in XRP's open interest suggests continued investor interest in the cryptocurrency, according to analyst Iliya Kalchev.

A surge in XRP’s open interest suggests continued investor interest in the cryptocurrency, an analyst told Bitcoin.com News.

XRP open interest on major exchanges has surged to $4 billion, according to data from Cryptoquant.

The spike in open interest is usually seen as an indicator of increased speculative trading.

A dispatch analyst at Nexo attributed the surge to favorable regulatory developments and the rallying cryptocurrency market.

A surge in XRP’s open interest suggests the number four digital asset is likely to remain “a focal point in the crypto space for the foreseeable future.”

This is according to Iliya Kalchev, a dispatch analyst at Nexo, who argues that the surge indicates an “expanding investor base and heightened trading activity.”

The significant jump in open interest is generally seen as an indicator of increased speculative trading, as traders bet on future price movements.

Kalchev’s comments on XRP’s open interest surge come days after a Cryptoquant analyst reportedly disclosed a rise exceeding 30%, bringing total open interest across major exchanges to $4 billion.

However, analyst Maarten Regterschot reportedly cautioned that the spike could be “leverage-driven,” raising volatility risks.

In a statement to Bitcoin.com News, Kalchev attributed the rise to favorable regulatory developments and the rallying cryptocurrency market.

“The recent surge in XRP’s open interest is an indication of several converging factors. Favorable regulatory developments, such as Ripple’s approval to launch a stablecoin in New York, are certainly contributing to the narrative,” the Nexo analyst explained.

“Additionally, the broader crypto market has been rallying throughout the past few weeks, attracting attention and capital flows to XRP, among other digital assets. This increased liquidity and speculation are likely to be driving the surge in open interest.”

The Nexo analyst went on to highlight XRP’s “foundational strengths” and growing appeal within the broader crypto community. According to Coingecko data, XRP, which briefly replaced tether (USDT) as the number three digital asset, remains one of the best-performing altcoins over the past 30 days.

Its price has largely stayed above $2 since surpassing that mark on Dec. 1, a level only previously reached in January 2018.

XRP’s rising popularity with crypto traders has also coincided with continued regulatory wins for its issuer, Ripple.

As recently reported by Bitcoin.com News, Ripple is now set to launch a stablecoin after receiving final approval for RLUSD from the New York State Department of Financial Services (NYDFS).

Some analysts believe this approval and the expected policy shift under the Trump administration could significantly boost XRP.

Meanwhile, Kalchev also shared his thoughts on the sustainability of XRP’s rally.

“The trajectory of XRP will depend largely on how Ripple’s strategic initiatives unfold and how the broader crypto market continues to mature,” the Nexo analyst said.

“Judging by recent progress, there are signs that these trends could sustain, positioning XRP for continued relevance and growth in a competitive landscape.”