The crypto asset (virtual currency) X R P (XRP) is rising. This is because the issuer, Ripple Labs, has won a lawsuit with the U.S. Securities and Exchange Commission (SEC), and there are widespread expectations that risk taking will progress in a wider market.
According to CoinDesk data, at the time of this writing, XRP has risen 57% since March 22, reaching a 10-month high of around $0.58. ).
Coinglass data also shows that since the rally began, open interest in the futures market has increased by about 90%, reaching its highest level since December 2021 at $843 million (about 110 billion yen, equivalent to 130 yen to the dollar). ) has been reached.
An increase in open interest coinciding with a price increase is usually said to indicate an inflow of money on the bullish side and confirm an uptrend. Funding rates are also positive on most exchanges at the time of this writing, suggesting bullish traders have the upper hand.
The broader market also rose, with Bitcoin (BTC) rebounding to $28,000, making up for losses following the US Commodity Futures Trading Commission (CFTC) filing a lawsuit against Binance.
Expectations for alt season
“The bull move comes over the Ripple v. SEC litigation, which is dominated by optimism that Ripple will win,” said Lewis Harland, portfolio manager at Decentral Park Capital. Stated. If Ripple wins, he sees interest in altcoins broadly increasing.
In 2020, the SEC sued Ripple Metwork’s $1.3 billion sale of XRP, accusing it of selling unregistered securities. Ripple claims that XRP is a commodity, not a security.
Securities are more regulated than commodities and require greater transparency and reporting requirements. So, while a Ripple win is likely to have a positive impact on the cryptocurrency market, a loss could rekindle risk aversion.
“The SEC victory could affect other altcoins, which may be more heavily regulated.” It will solidify and drive price increases,” Markus Thielen, head of research and strategy at crypto service provider Matrixport, wrote in a note to clients Monday.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: Open Interest in XRP Surges to $800M as Crypto Traders Hope Ripple-SEC Verdict Will Bring ‘Alt Season’