• XRP Perpetual Futures Open Interest (PFOI) has spiked significantly in the past week to $610 million.
• Spot XRP daily trading volume is closely correlated with PFOI, with a monthly peak at around $2.5 billion.
• The SEC lawsuit against Ripple is expected to conclude soon, with some expecting Judge Torres’ decision before March 31st.
XRP Perpetual Futures Open Interest Skyrockets
The XRP derivative market shows strong positive sentiment as the Perpetual Futures Open Interest (PFOI) skyrockets to $610 million since March 24. This open interest refers to the number of open futures contracts held by traders at the end of each trading day and is commonly used to measure market sentiment and underlying price movements. Additionally, XRP spot daily trading volumes have been seen rising and falling in tandem with PFOI, reaching up to a peak of around $2.5 billion per month on two occasions – primarily driven by the Korean market.
SEC Lawsuit Against Ripple
In December 2020, the U.S Securities and Exchange Commission (SEC) filed charges against Ripple over allegations it had raised over $1.3 billion through unregistered sales of its XRP token without proper registration or exemption from registration as required by federal securities laws. While both sides have presented their arguments since then, observers note that the regulator’s case appears weak – leading many XRP advocates to believe that a favorable ruling may emerge soon from Judge Torres’ decision which is expected before March 31st, although no official confirmation has been given yet.
Positive Market Sentiment
The increasing XRP Perpetual Futures Open Interest and spot daily trading volumes are indications of positive market sentiment being displayed by traders in relation to XRP’s future prospects despite the ongoing court dispute between Ripple and SEC over allegations that it violated federal securities laws by selling an unregistered security in form of its native token – XRP .
Analysis from Kaiko Data Platform
Analysis from Kaiko data platform reveals that PFOI had remained relatively steady at around $300 million for most part of March until a jump occurred on 22nd March taking it as high as $500 million followed by downtrend until this week when it once again shot up peaking at about 610 million dollars . Further analysis also showed spot volumes being primarily driven by Korean markets which rose & fell alongside PFOI .
XRP’s surging open interest indicates investors confidence in its future prospects while we await Judge Torres’ verdict on SEC’s lawsuit against Ripple which many anticipate will be resolved soon .