XRP Hits $2.6 Billion In This Key Metric Fueled By Three Major Events

According to COinGlass, XRP’s open interest has swelled to a new historic high of $2.6 billion. As reported by Cointelegraph, this milestone is driven by SEC Chair Gary Gensler’s resignation, Donald Trump’s re-election, and speculation regarding a potential XRP exchange-traded fund (ETF).

Market Dynamics Driving XRP’s Surge

The digital asset recently achieved a price of $1.62, marking its highest level since 2021. This price rally has been accompanied by heightened enthusiasm in the broader cryptocurrency market, fueled, in part, by political and regulatory changes in the U.S.

Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), announced he will step down effective January 20, 2025. The announcement was welcomed by crypto advocates, as the incoming administration is expected to appoint a more crypto-friendly successor.

Market participants view this as a positive signal for the industry, potentially easing regulatory hurdles that have challenged XRP and other cryptocurrencies in recent years.

Donald Trump’s return to the presidency has also been a pivotal factor in recent market activity. His pro-business policies and crypto-friendly stance have reinvigorated investor confidence. Bitcoin, the market leader, reached an all-time high of $99,655 less than a month after his victory, setting the stage for gains across altcoins, including XRP.

Open Interest Hits Record High

XRP’s open interest, which measures the total value of outstanding derivative contracts such as futures and options, has reached an unprecedented $2.6 billion. This surge reflects growing investor participation and increased trading activity around the asset.

The rise in open interest could signal heightened market expectations for XRP’s future performance, particularly with the multiple XRP ETFs awaiting approval.

The potential for an XRP ETF has been a significant driver of speculative interest. An ETF could provide institutional investors with easier access to the asset, further legitimizing XRP within the financial ecosystem. Although no formal approval has been announced, the market appears excited for the approval given the shift in the regulatory environment.

At press time, Coinglass data showed that XRP Open Interest had fallen slightly to $2.04 billion, and the asset traded at $1.36. Whales also make interesting moves within the ecosystem, potentially gearing up for a massive move in early 2025.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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