XRP price’s journey to $1 this year has been nothing short of spectacular, considering the ongoing Securities and Exchange Commission lawsuit against Ripple initiated in December 2020. The regulator alleges that XRP was a $1.3 billion unregistered securities offering, and both CEO Brad Garlinghouse and co-founder Christian Larsen are also in the crosshairs.
On Tuesday, Ripple Labs was granted access to the SEC’s documents “expressing the agency’s interpretation or views” on the subject of crypto assets.
XRP price in USD at Bitstamp. Source: TradingView
Such news coincided with an explosive 75% rally in 30 hours, causing XRP to cross the $1 mark for the first time since March 2018.
It is worth noting that coincidently, on Monday, XRP posted a 10% gain following Ripple’s announcement of a 40% stake acquisition in Tranglo, an Asian fiat money remittance company.
Positive news boosts XRP derivatives market growth
Whatever the rationale behind such an impressive move, investors’ interest in XRP futures trading skyrocketed as open interest reached $1.2 billion, a new all-time high.
XRP futures aggregate open interest. Source: Bybt
The 119% open interest increase in 30 days caused XRP to retake the third position, which had been lost to Polkadot’s DOT, Litecoin (LTC) and Cardano’s ADA over the past couple of months. As a comparison, Ether (ETH) futures open interest stood at $3.3 billion just three months ago.
Even though futures buyers and sellers are evenly matched at all times, a healthy derivatives market allows larger players to participate. Once an asset gets enough…