Analysts point out that the surge in XRP’s open interest indicates its growing appeal and solid fundamental strength.

According to analyst Iliya Kalchev, the surge in XRP holdings indicates that investor interest in the cryptocurrency continues to grow.
XRP’s open interest growth is mainly driven by leverage
Iliya Kalchev, an analyst at Nexo, said the recent surge in XRP’s open interest suggests the fourth-ranked digital asset is likely to remain “a focal point in the crypto space” for the foreseeable future. He believes the surge points to a “widening investor base and increased trading activity.”
A significant increase in open interest is often seen as an indicator of increased speculative trading as traders place bets on future price movements.
Kalchev’s comments on XRP’s open interest surge came after analysts at Cryptoquant reported a surge of more than 30%, pushing total open interest on major exchanges to $4 billion. However, analyst Maarten Regterschot reportedly warned that the surge could be “leverage-driven,” increasing volatility risk. Speaking to News, Kalchev said the surge was due to favorable regulatory developments and a rally in the cryptocurrency market.
Nexo analysts believe that XRP's "fundamental strength" and growing appeal across the cryptocurrency community are key drivers of this surge. According to Coingecko data, XRP has been one of the best performing altcoins over the past 30 days, replacing USDT as the third-largest digital asset at one point. Since breaking through the $2 mark on December 1, its price has essentially remained at this level, a level that was only previously reached in January 2018.
XRP’s growing popularity among cryptocurrency traders seems to coincide with the continued regulatory victories of its issuer, Ripple. As News recently reported, Ripple is about to launch a stablecoin after receiving final approval from the New York State Department of Financial Services (NYDFS) for RLUSD. Some analysts believe that this approval and the expected policy shift from the Trump administration could significantly boost the development of XRP.
Meanwhile, Kalchev also expressed his views on the sustainability of XRP’s upward trend.
“XRP’s trajectory will largely depend on how Ripple’s strategic initiatives unfold and how the overall cryptocurrency market matures,” said analysts at Nexo. “Looking at recent developments, there are signs that these trends may continue, laying the foundation for XRP’s continued relevance and growth in a competitive environment.”