XRP Perpetual Futures Open Interest (PFOI) has experienced a significant surge in recent days, reaching a peak of $610 million on Wednesday. This surge in PFOI refers to the number of open futures contracts traders hold at the end of a trading day and is commonly used to gauge market sentiment and the strength underlying price moves.
The futures contracts in question are perpetual futures, a type of derivative contract with no expiration date that is cash-settled rather than settled in the underlying asset. Analysis from data platform Kaiko showed a spike in XRP PFOI since the start of March, with a steady level of around $300 million until March 22, followed by a significant jump up to $500 million. The following days saw a downtrend, but XRP PFOI picked up again as futures traders began to pile in, eventually peaking at $610 million on March 31.
Further analysis from Kaiko revealed that spot XRP daily trading volume had been rising and falling in tandem with PFOI. The chart showed that Korean markets were mostly driving spot volumes.
The recent surge in XRP futures contracts comes amid the lawsuits filed by the SEC against Ripple, alleging the company raised over $1.3 billion through the unregistered XRP token. Many XRP advocates anticipate a favorable outcome for Ripple, but there has yet to be a final verdict from Judge Torres.
Some in the XRP community expect a decision from the judge by March 31, although this deadline was a predictive estimate from a lawyer monitoring the case. The anticipation of a case conclusion has already filtered into the spot price, with XRP recording 57% gains at its peak, posting a 46-week high.
In summary, the sustained increase in XRP PFOI reflects growing investor interest in XRP futures contracts, with spot XRP daily trading volume increasing alongside this trend. While the outcome of the SEC lawsuits against Ripple remains uncertain, the anticipation of a decision is already having an impact on the XRP spot price. As with all cryptocurrency markets, however, it’s impossible to predict what the future holds.