XRP open interest surges 300% as altcoin hits new highs

XRP (CRYPTO:XRP) has reached new all-time highs, with its open interest increasing by $6 billion since the start of January. 

The altcoin is currently priced at approximately $3.27 and has entered a price discovery phase for the first time since 2017.

It has exhibited three consecutive months of positive performance, a trend only seen once before.

XRP's open interest has soared to $7.9 billion, reflecting a 27.34% increase in just 24 hours, while futures volume has doubled to $42.87 billion.

Since January 1, open interest has surged by 300%, rising from $1.92 billion at the beginning of the year.

Despite this growth, on-chain analyst Dom noted that XRP's rally is primarily driven by spot trading rather than futures.

He stated, “Perps have faded every single pump and jumped into shorts on every single pullback.”

This suggests that while futures traders are skeptical, spot volumes have increased, indicating strong demand among investors.

Additionally, XRP reserves on exchanges like Binance have risen by 10% since mid-December, implying profit-taking among investors.

Whale activity has also surged, with over 2,365 transactions exceeding $100,000 occurring recently, marking the highest level in six weeks.

At the time of reporting, the XRP price was $3.27.