New reports reveal that the XRP Open Interest (OI) has surged dramatically over the past week. The cryptocurrency recorded a massive increase of over $1 billion, driven by growing expectations of Ripple’s upcoming stablecoin, Ripple USD (RLUSD). Amid this sudden surge in open interest, analysts forecast a significant price increase for XRP, anticipating a strong rally to new highs.
XRP Open Interest Surges Past $1 Billion
According to data from Coinglass, XRP’s open interest spiked to an impressive $1.04 billion before dropping down to $684.8 million as of writing. This massive surge in Open Interest marks a substantial rise in investor confidence and XRP’s market activity.
Notably, Open Interest is an important metric used in trading cryptocurrency derivatives, representing a measure of the total number of active positions in a derivative market. This technical tool is often used to evaluate market sentiment and anticipate potential future price increases.
In XRP’s case, the sudden increase in Open Interest above $1 billion suggests that traders and investors may be positioning themselves for potential gains as they anticipate the impact of the upcoming RLUSD stablecoin. XRP, which has continually had a poor performance in the market for years, may be reflecting a sense of renewed optimism amongst investors.
Interestingly, this spike in XRP’s Open Interest has been largely driven by the excitement surrounding Ripple’s RLUSD stablecoin. According to reports from the Ripple Stablecoin tracker on X (formerly Twitter), approximately 480,000 RLUSD was minted at the RLUSD treasury on September 29. Additionally, another 10,000,000 RLUSD was minted in the last 24 hours.
This minting could be a strong indication that the testing phase for the RLUSD stablecoin may be over. Back in August, Ripple revealed on X that the RLUSD was in private beta, undergoing rigorous testing on both the XRP Ledger (XRPL)and Ethereum mainnet.
With the potential conclusion of the testing phase, the RLUSD stablecoin could enter a more active deployment stage. Nevertheless, Ripple has shared that the RLUSD is still in private beta and although many on-chain activities involving the stablecoin have been observed, the stablecoin remains unavailable to the public for now.
Update On Price Dynamics
Amidst the rise in XRP’s Open Interest followed by a 31.5% drop to $684.8 million, the price of the cryptocurrency has been striving to maintain some form of stability. As of writing, the cryptocurrency is trading at $0.53 after experiencing a massive price crash recently.
Despite recent market volatility, XRP continues to maintain its price around the $0.5 consolidation area, experiencing a 1.27% value increase in the last 24 hours. The cryptocurrency is now in the red after experiencing a significant decline as news of the appeal by the United States Securities and Exchange Commission (SEC) spread across the crypto community. During this period, Ripple’s price dropped by 9.47%, raising the ire of many XRP community members.
Featured image created with Dall.E, chart from Tradingview.com
