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XRP, the third largest cryptocurrency by market capitalization, has seen its open interest (OI) skyrocket to $4 billion in the last 24 hours.
This increase in OI indicates increased market activity, as XRP experiences a big price gain following the announcement of its inclusion in a crypto strategic reserve.
Open interest is the total number of outstanding futures or options contracts on the market. It measures the amount of money invested in derivatives at any one time. When traders enter futures or options contracts, open interest rises, and vice versa.
Alex DovbnyaOpen interest can provide insight into the sentiment of market participants toward cryptocurrency. For instance, rising open interest may indicate growing bullish sentiment among traders and vice versa.
According to CoinGlass data, XRP open interest has surged nearly 25% in the last 24 hours to $4 billion. This increase is coupled with an uptick in price and other market measures. Within this time frame, XRP options volume skyrocketed 3,343% while options open interest rose 910% to $3.22 million.
What's happening?
At the time of writing, XRP was up 16% in the last 24 hours to $2.58, with its spot trading volume skyrocketing 593% in the time frame to $22.96 billion.
XRP rose from $2.17 to $3.02 in Sunday's session on the news that it would be included in a crypto strategic reserve alongside SOL, ADA, BTC and ETH.
Tomiwabold OlajideHowever, XRP is giving up some of its initial gains, alongside other coins on the market, as investors are taking profits after a massive surge. XRP fell from a high of $2.96 to $2.52 during Monday's session.
While the crypto market reacted enthusiastically to the announcement of the strategic reserve, the plan for it remains unknown, including how much will be purchased and how the purchases will be paid.
Eyes are also focused on what happens next in the Ripple-SEC litigation. While the SEC has cleared its slate of numerous crypto enforcement actions, the appeal in the Ripple case has not yet been dismissed.
Vladislav Sopov
Dan Burgin