- XRP open interest hit a peak of $1 billion on Sunday and decreased since then, down to $846 million on Wednesday.
- Ripple Labs tests its stablecoin RLUSD, minting large volumes of the asset and fueling interest among market participants.
- XRP steadies around support at $0.6000 and trades positive on the day.
Ripple (XRP) has generated interest among derivatives traders as the payment remittance firm tests its stablecoin Ripple USD (RUSD). Ripple announced that the asset is awaiting regulatory approval and is geared toward institutions, not individuals. However, as the minting of RLUSD ramps up, there is a rise in open interest across derivatives exchanges.
XRP holders likely consider it a positive development for Ripple since higher adoption of the firm’s payment infrastructure and services could boost the usage and adoption of the altcoin.
Ripple stablecoin tests catalyze open interest increase in XRP
Ripple ramped up stablecoin testing efforts and minted large volumes of RLUSD in the past few weeks. The payment remittance firm made headlines as it minted 99% of the stablecoin’s total supply (800,000) in a 24-hour time period between September 28 and 29.
Ripple’s stablecoin RLUSD has a total supply of 812,034 across two blockchains – Ethereum and the XRP Ledger.
The total supply of RLUSD is 812,034 across ETH and XRPL.
In the last ~24h in total 800k RLUSD got minted on Ethereum and #XRP Ledger combined.
99% of the total supply was minted in the last 24h.
— Vet ☠️ (@Vet_X0) September 29, 2024
Ripple’s progress in the stablecoin project has emerged as a key market mover for XRP.
According to data from Coinalyze, open interest (typically considered a measure of market activity) in XRP jumped to a peak of $1 billion on Sunday. Since then, it corrected to $846 million on Wednesday.
XRP Futures Open Interest (USD)
While Ripple stablecoin tests are underway, the payment remittance firm is working with regulators to obtain relevant licenses to drive the adoption of the financial services infrastructure. Ripple announced on Tuesday that the firm received a financial services license from the Dubai Financial Services Authority (FSA).
Ripple can now offer services as a licensed firm to institutions within the UAE, likely to drive XRP Ledger and XRP token utility.
XRP holds steady around the psychologically important $0.6000 at the time of writing on Wednesday.
