XRP Futures Open Interest Reaches Staggering $1.2 Billion, Surpassing Levels Unseen Since 2021
In a dramatic turn of events, XRP’s futures open interest has experienced a significant surge, reaching an astounding $1.2 billion at one point on the 20th, shortly after the company secured a victory in the first round of its legal battle with the U.S. Securities and Exchange Commission (SEC). This notable achievement marks the highest open interest level seen since November 2021, showcasing a renewed investor confidence in the cryptocurrency.
The recent courtroom success for Ripple has certainly been a game-changer for the embattled company. The trial with the SEC, which commenced on the 13th, culminated in a favorable summary judgment, driving the price of Ripple’s XRP token to soar. On the day of the ruling, XRP experienced an impressive 101% price increase within a single day, an unprecedented surge not witnessed since December 2021.
Among the cryptocurrency exchanges, Binance took the lead with the most substantial open interest, accounting for $343 million, representing approximately 40% of the total open interest in Ripple futures. Following closely were Bybit with $291 million, and Bitget with $262 million. Other major players in the cryptocurrency market, including OKX, BitMEX, Kraken, Huobi, and CoinX, also contributed to the rising open interest figures.
The surge in open interest is a clear testament to the growing confidence among investors after the positive courtroom outcome for Ripple. However, the SEC, despite its legal setback, has hinted at the possibility of appealing the ruling. The commission’s documents filed with the court on Friday raised concerns regarding allegations of fraud by Terraform Labs and its founder, Do-Hyung Kwon. The SEC pointed out that some of the rulings made in the Ripple case were erroneous and urged the court not to follow suit while dealing with the Terra lawsuit.
Despite the SEC’s stance, John Deaton, a staunch Ripple supporter and partner attorney at the reputable law firm Deaton, expressed his conviction that the U.S. Court of Appeals for the Second Circuit is unlikely to overturn the prior ruling even if the SEC decides to appeal. Deaton’s assessment further bolsters the positive sentiment surrounding Ripple’s current legal position.
The ongoing legal battle between Ripple and the SEC has been closely watched by investors, cryptocurrency enthusiasts, and industry experts. Ripple’s XRP token, which has been significantly impacted by the regulatory uncertainty, now seems to be on a path to recovery, driven by the recent favorable ruling and the subsequent rise in open interest.
Read more:
- Garlinghouse Believes SEC Appeal Will Consolidate Judge’s Decision On XRP’s Non-Security Status
- SEC’s Potential Ripple Appeal: The Implications For XRP Holders