Open interest in XRP (XRP) tokens has surged in recent days, fueled by excitement surrounding the testing of RLUSD, a stablecoin being developed by Ripple Labs, which is closely tied to XRP. The recent activity around RLUSD includes the minting of substantial amounts of the token, suggesting that the project may be nearing the end of its testing phase or advancing into more active stages of development. This has generated speculative interest, particularly on social media platforms like X (formerly Twitter), where users are closely monitoring the minting events.

Open Interest (OI) refers to the total number of unsettled derivative contracts for an asset, and it plays an important role in market analysis. Typically, a rise in both OI and the asset’s price indicates that new funds are flowing into the market. However, if prices rise while OI decreases, it may suggest that the price increase is due to short covering (closing out short positions), which could signal a weaker upward trend.

On Monday, Ripple reaffirmed that RLUSD is still in private beta testing on both the XRP Ledger and Ethereum blockchain. In a post on X, Ripple warned users to be cautious of scams attempting to exploit the RLUSD stablecoin. Ripple intends to integrate RLUSD into its cross-border payments solution, aiming to improve liquidity and enable faster, more cost-effective transactions. Additionally, RLUSD may have the potential to integrate with various decentralized finance (DeFi) protocols across multiple blockchains.

Speculative activity on XRP futures contracts exceeded $1 billion over the weekend, a level last observed in March and June of last year. Major cryptocurrency exchanges Binance and Bybit account for nearly half of these futures contracts, according to data from Coinglass. Moreover, spot trading volumes for XRP more than doubled in the past week, reaching a peak of $2.5 billion on Sunday.

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