A surge in XRP’s open interest suggests continued investor interest in the cryptocurrency, according to analyst Iliya Kalchev.

XRP Open Interest Leverage Driven

The recent spike in XRP’s open interest suggests the number four digital asset is likely to remain “a focal point in the crypto space for the foreseeable future,” according to Iliya Kalchev, a dispatch analyst at Nexo. He argues that the surge points to an “expanding investor base and heightened trading activity.”

The significant jump in open interest is generally seen as an indicator of increased speculative trading, as traders bet on future price movements.

Kalchev’s comments on XRP’s open interest surge came days after a Cryptoquant analyst reportedly disclosed a rise exceeding 30%, bringing total open interest across major exchanges to $4 billion. However, analyst Maarten Regterschot reportedly cautioned that the spike could be “leverage-driven,” raising volatility risks. In a statement to Bitcoin.com News, Kalchev attributed the rise to favorable regulatory developments and the rallying cryptocurrency market.

The Nexo analyst believes XRP’s “foundational strengths” and growing appeal within the broader crypto community are key drivers of the surge. According to Coingecko data, XRP, which briefly replaced tether (USDT) as the number three digital asset, remains one of the best-performing altcoins over the past 30 days. Its price has largely stayed above $2 since surpassing that mark on Dec. 1, a level only previously reached in January 2018.

XRP’s rising popularity with crypto traders has seemingly coincided with continued regulatory wins for its issuer, Ripple. As recently reported by Bitcoin.com News, Ripple is poised to launch a stablecoin after receiving final approval for RLUSD from the New York State Department of Financial Services (NYDFS). Some analysts believe this approval and the expected policy shift under the Trump administration could significantly boost XRP.

Meanwhile, Kalchev also shared his thoughts on the sustainability of XRP’s rally.

“The trajectory of XRP will depend largely on how Ripple’s strategic initiatives unfold and how the broader crypto market continues to mature. Judging by recent progress, there are signs that these trends could sustain, positioning XRP for continued relevance and growth in a competitive landscape,” the Nexo analyst said.