• XRP Perpetual Futures Open Interest (PFOI) has skyrocketing from $300 million to $610 million since March 24.
• The increase in PFOI is being driven by a surge of activity on the spot market, particularly in the Korean market.
• Many XRP advocates are expecting a favorable decision to be delivered soon in regards to the SEC lawsuit against Ripple.
XRP Perpetual Futures Open Interest Skyrockets
The XRP derivative market indicates strong positive sentiment, with Open Interest (PFOI) for XRP Perpetual Futures having skyrocketed from $300 million to around $610 million since March 24. This surge is being driven by an increase in activity on the spot market- primarily in the Korean Market.
SEC Lawsuit Against Ripple
In December 2020, the SEC filed charges against Ripple alleging they had raised over $1.3 billion through unregistered XRP tokens. Since then both sides have stated their case and many observers noted the fragility of the regulator’s arguments. While many XRP advocates expect a favorable decision, there has been no official confirmation of when this outcome will be given.
What is Open Interest?
Open interest refers to the number of open futures contracts traders hold at the end of a trading day and is commonly used to gauge market sentiment and strength underlying price moves. Whereas perpetual futures are a form of derivative contract that has no expiration date and is cash settled – as opposed to settled in the underlying asset.
Analysis from Kaiko Data Platform
Analysis from Kaiko data platform showed that spot daily trading volumes rose and fell in tandem with PFOI – peaking at around $2.5 billion on two occasions last month due to Korean demand for XRP tokens.
The rise in PFOI suggests strong positive sentiment among traders regarding XRP despite ongoing legal issues between Ripple and SEC – with many expecting a favorable outcome soon