XRP, stewarded by blockchain payments startup Ripple, is trading at heights not seen in three years as the wider crypto market benefits from anticipated impending political tailwinds in the United States. The token has been on a clear upward course since President-elect Donald Trump won the presidency against Kamala Harris earlier this month.
As the price of XRP goes ballistic, open interest in futures markets has climbed to record-breaking levels.
Why XRP’s OI Is At All-Time Highs
Earlier today, XRP’s open interest spiked to a new historic high of $2.6 billion, according to CoinGlass data. High OI usually reflects an increase in speculative trading as traders place bets on future price movements. This can lead to higher volatility as leveraged positions heighten reactions to market news.
Maartunn, a pseudonymous on-chain analyst at CryptoQuant, highlighted key factors contributing to the surge in the OI. Firstly, Securities and Exchange Commission Chair Gary Gensler’s imminent resignation shortly following Trump’s inauguration on January 20. After his exit, XRP may have a cleared runway to regain investor confidence and expand its use cases without the overhang of regulatory uncertainty.
Additionally, XRP has garnered attention due to renewed hopes of potential spot XRP exchange-traded funds (ETFs) hitting the U.S. market. As ZyCrypto previously covered, asset managers like Bitwise, 21Shares, and Canary Capital have already filed applications for spot XRP products with the SEC.
Maartunn also pointed to Donald Trump’s recent election win, which brought a wave of bullish sentiment. Crypto market participants’ expectations of crypto-friendly legislation propelled interest in XRP and the broader market.
Can XRP Smash $100 Target?
Early crypto investor and analyst Armando Pantoja took to the X social media platform to challenge skeptics who claim the price of XRP can’t hit the $100 mark due to “market cap.”
Pantoja drew an interesting analogy between the Internet’s early days and XRP’s future potential.
He contended that saying XRP can’t reach $100 based on the market cap is similar to people claiming in 1992 that the Internet could not become a powerful force just because only a small fraction of homes owned personal computers at the time.
“People adopt, things change, and the world adapts,” Pantoja added.
He, however, clarified that we are unlikely to see $100 XRP in the next five years or more. Nonetheless, he believes “$8-$20 is reasonable in this cycle, 2025.”
