Investor interest in Ripple‘s XRP has reached a new record since November 2021. According to data provided by crypto analysis platform CoinGlass, as of July 20th, the open interest in XRP futures contracts exceeded $1 billion.
Open Interest in XRP Reaches $1.2 Billion
The open interest in XRP, which reflects the total value of positions in unclosed futures contracts, reached $1.2 billion as of July 20th. This increase in the leading altcoin’s open interest occurred after Ripple’s victory in the lawsuit filed by the U.S. Securities and Exchange Commission (SEC). Open interest is a crucial metric that often provides insights into the flow of money and the strength of a specific price trend in futures markets.
It can be observed that Binance has the highest open interest among cryptocurrency exchanges, reaching $357 million, followed by Bitget with $198 million and OKX with $71 million. Bitmex ranks fourth with an open interest of $7 million.
This significant surge in XRP futures occurred while Ripple CEO Brad Garlinghouse was applauding crypto champions during a recent hearing in the U.S. Congress. In response to the SEC’s decision to appeal the court’s ruling in favor of Ripple, Garlinghouse expressed his disappointment with the regulatory agency’s overreach on his personal Twitter account on July 23rd.
The Ripple CEO argued that the SEC’s approach to the cryptocurrency industry is overly punitive, leaving consumers unprotected and often dealing with outcomes in bankruptcy court.
Court Decision Ignites XRP’s Rally
The ongoing legal battle between Ripple and the SEC has a significant impact on the rest of the cryptocurrency market. The case revolves around whether XRP should be classified as a security, and the summary judgment issued by the U.S. District Court on July 13th, stating that XRP sales on secondary markets like Binance are not securities, dealt a heavy blow to the SEC.
Following the court’s decision, XRP quickly surged and reached a high of $0.9380, a more than 90% increase. However, factors such as the SEC’s announcement of its intention to appeal the court decision dampened the hype, and the leading altcoin has been experiencing selling pressure for some time. CoinMarketCap data shows that XRP traded at $0.728 on July 26th, with a 1.75% decrease in the past 24 hours, ahead of the critical Fed interest rate decision.
