XRP open interest hits $1.8B amid market optimism

XRP’s  (CRYPTO:XRP) open interest (OI) has surged to an all-time high of $1.8 billion, reflecting increased investor activity around the token.

According to CryptoQuant, the rise in OI aligns with recent developments surrounding XRP, including regulatory shifts and broader market sentiment.

Since the U.S. elections three weeks ago, XRP has experienced significant price growth, climbing from below $0.6 to over $1.6 for the first time in three years.

This price surge coincided with SEC Chair Gary Gensler’s announcement that he will step down in January 2025, fueling optimism for a more crypto-friendly regulatory environment.

The OI increase has been attributed to three primary factors.

According to CryptoQuant analyst maartunn, Gensler’s planned exit has spurred hopes for favorable regulatory changes.

Additionally, Donald Trump’s pro-crypto campaign and subsequent election victory have brought bullish sentiment, with expectations of supportive policies driving interest in the market.

A third factor is speculation surrounding the potential approval of an XRP exchange-traded fund (ETF).

Recent filings by asset managers for crypto ETFs, including XRP-focused products, have attracted institutional investors.

The possibility of such approvals has amplified market activity, contributing to the OI surge.

Despite recent gains, XRP’s current price of $1.5 remains over 50% below its 2018 all-time high of $3.4.

Analysts suggest that resolving the ongoing lawsuit against the SEC could propel XRP closer to reclaiming its previous highs.

Some members of the XRP community have even projected ambitious targets of $10 or $30 per token during this cycle.

At the time of reporting, the XRP price was $1.42.