Open interest for XRP futures hits a record $ 1.2 billion


The journey of the XRP price to $ 1 this year was nothing short of spectacular given the Securities and Exchange Commission lawsuit filed against Ripple in December 2020. Regulators claim that XRP was an unregistered $ 1.3 billion offering of securities and both CEO Brad Garlinghouse and co-founder Christian Larsen are also in the crosshairs.

On April 6, Ripple Labs was granted access to SEC documents expressing the agency’s interpretation or views on crypto assets.

XRP price in USD at Bitstamp. Source: TradingView

That news coincided with the explosive 75% rally in 30 hours, causing XRP to cross the $ 1 mark for the first time since March 2018.

It’s worth noting that XRP price accidentally gained 10% on April 5th after acquiring 40% stake in Tranglo, an Asian fiat money transfer company.

Positive news is fueling XRP derivatives market growth

Regardless of the reasons for this impressive move, investor interest in trading XRP futures skyrocketed when open interest hit $ 1.2 billion, a new all-time high.

XRP futures aggregate open positions. Source: Bybt

The 119% increase in open positions in 30 days resulted in XRP recapturing the third position that had been lost to Polkadot (DOT), Litecoin (LTC) and Cardano (ADA) in recent months. For comparison: The open positions in Ether (ETH) futures three months ago were USD 3.3 billion.

Although futures buyers and sellers are the same at all times, larger players can participate in a healthy derivatives market. Once an asset receives enough hedging and arbitrage activity, its volume on cash exchanges tends to grow and the cycle continues.

Top cryptocurrencies 1 month performance and volume. Source: Nomics

As shown above, the XRP spot volume for the past 30 days is $ 44.3 billion, which is roughly 31% of the ether volume. Regardless of the price movement, a healthy derivatives market creates a self-fulfilling growth path as long as the token continues to attract investors’ attention.

On the other hand, price pumps that are not accompanied by spot volume growth increase the risk of large sell-offs and avoid arbitrage traders.

The activities related to social metrics have become ballistic

Meanwhile, Cointelegraph Markets Pro’s VORTECS ™ data began to see an bullish outlook for XRP on April 5, while the token price appeared to have stagnated at $ 0.72.

The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS ™ Score vs. XRP (white) price. Source: Cointelegraph Markets Pro

As seen in the graph above, the VORTECS ™ Score for XRP flipped green on April 5th and continued to show a positive indicator as the price climbed to a high of $ 1.10 on April 6th, causing it to rise by 53% led in 36 hours.

While the indicator remains neutral for now, XRP price could continue its rally if more positive news emerges regarding the SEC lawsuit.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.


Melinda Martin