Analyst: The surge in XRP open interest indicates its underlying strength is increasing

ChainCatcher news, according to Bitcoin.com, Nexo's research analyst Iliya Kalchev stated that the recent surge in XRP open interest indicates that this fourth-ranked digital asset may remain a "focus" in the crypto space for the foreseeable future. He believes this spike signifies "an expansion of the investor base and an increase in trading activity." A significant increase in open interest is often seen as an indicator of rising speculative trading, as traders bet on future price movements.

It is worth noting that Kalchev's comments on the surge in XRP open interest were made a few days after reports from Cryptoquant analysts revealed that open interest had grown by over 30%, bringing the total open interest on major exchanges to $4 billion. However, analyst Maarten Regterschot reportedly warned that this surge could be "leverage-driven," increasing volatility risk. In a statement to Bitcoin.com news, Kalchev attributed this growth to favorable regulatory developments and a rebound in the cryptocurrency market.