Ripple\u2019s XRP token amassed close to $1 billion in open interest over the weekend, while its price hovers around $0.61 at press time, data from CoinGlass shows.<\/p>\n
While the top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have been down 1.5% and 2.3% over the past week, XRP has been up 4.1% during the same period. Several factors could explain XRP\u2019s counter-trend price action.<\/p>\n
For example, digital asset manager Grayscale Investments recently launched a closed-end XRP Trust in the US, enabling institutional investors to gain exposure to one of the top ten cryptocurrencies by reported market cap.<\/p>\n
Grayscale\u2019s Trust\u00a0surged<\/a> by more than 11% within a week, hinting at strong institutional demand for the seventh largest crypto-asset.\u00a0<\/p>\n The launch of the Trust has also fuelled speculations about the potential approval of an XRP exchange-traded fund (ETF) shortly. If the US Securities and Exchange Commission (SEC) approves an XRP-based ETF, it would become only the third digital asset with its own ETF.<\/p>\n Another key development in the Ripple ecosystem is the anticipated launch of its USD-pegged stablecoin, RLUSD. Currently, crypto analysts on X are closely watching the stablecoin in private beta testing on both the XRP and Ethereum networks.<\/p>\n According to a recent update<\/a>, 480,000 RLUSD was minted at RLUSD Treasury, signaling active development of the stablecoin before its integration into Ripple\u2019s services, including its cross-border payment products. The stablecoin can also be used in decentralized finance (DeFi) protocols across blockchains.<\/p>\n Data<\/a> from CoinGlass indicates that open interest in XRP surged to more $1 billion over the weekend before it tumbled to roughly $945 billion at press time. Spot trading volume in the last 24 hours stands slightly above $2 billion.<\/p>\n A rise in open interest typically indicates increased market activity, suggesting that more contracts are being opened. This may signal expectations of a price move in either direction, depending on the prevailing market sentiment. Notably, XRP\u2019s open interest was last recorded around the $1 billion mark in March 2024.<\/p>\n As for price action, crypto analysts have divided opinions on XRP. Ripple Labs\u2019 recent legal victory over the SEC provided optimism for the altcoin bulls, with one analyst predicting<\/a> that if the token overcomes key resistance levels, it could surge to between $16 and $20.<\/p>\n Meanwhile, another crypto analyst, Carl Runfelt, highlighted<\/a> a multi-year bullish triangle pattern on the token\u2019s chart. He noted that if XRP breaks the pattern and goes parabolic, it could rise by more than 200% within weeks.<\/p>\nImplications Of Rising Open Interest<\/h2>\n