By
Temitope Olatunji
May 14th, 2024
Open interest on XRP futures has set a new record over $1.1 billion as the community continues to celebrate Ripple’s win against the SEC.
According to data from crypto futures trading and information platform Coinglass, open interest on XRP futures crossed the 24-hour $1 billion mark set last week and cemented a new record high for 2023. As of press time, Coinglass data shows XRP open interest at 1.43 XRP, equivalent to $1.13 billion, a more than 20% climb in the last 24 hours.
A rise in open interest shows increased bets on an asset. This usually results in larger inflows and indicates that the current market sentiment may sustain for a while.
Binance has the largest share of current open interests, at 39.98%, equal to $453.36 million (573.12 million XRP). Bybit and Bitget are in the second and third positions, at 26.4% and 23.16%, respectively. The lowest is CoinEx, with 0.08%, equal to $930.45K (1.18 million XRP).
XRP is currently trading at $0.7921, according to data from CoinMarketCap. The fourth-largest cryptocurrency by market cap has climbed 5.13% in the last 24 hours and a heavy 67% in the past 7 days. The price of XRP is benefitting generously from a recent court ruling in favor of Ripple Labs Inc.
XRP Futures Record Follows Court Ruling Against the SEC
Last week, Judge Analisa Torres of the District Court in the Southern District of New York ruled that XRP is not a security, concluding years of a legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, accusing the company of running an unregistered securities offering. According to the SEC, Ripple should have registered its XRP sale as a securities offering. The company raised over $1.3 billion at the time.
Although the court has concluded XRP is not a security, the ruling is only a partial victory as Judge Torres ruled that Ripple broke federal laws by conducting an institutional sale of the tokens.
Data from TradingView showed that the price of XRP jumped 98% in the hours after the ruling, hitting $0.93. The asset’s valuation also jumped to $46.1 billion, adding over $21 billion.
In an interesting turn of events, SEC Chairman Gary Gensler said he is disappointed in the court’s decision. Speaking at an event in Washington DC, Gensler said the SEC is “looking at it and assessing that opinion”.
With the lawsuit won, Ripple now hopes US banks and other financial institutions would be willing to use its On-Demand Liquidity (ODL) production for transactions. The ODL product is a fast and cost-effective method financial institutions can use to complete cross-border transactions. Following the SEC’s lawsuit in 2020, Ripple suffered some business losses, including losing its relationship with international money transfer giant MoneyGram.
Ripple has now warned its community to be careful of fraudsters and scammers looking to exploit the Ripple and XRP sentiment. CTO David Schwartz cautioned the public, warning that there is no special offer, including giveaways or airdrops, initiated to celebrate the win.