The renewed wave of volatility in cryptocurrency markets has driven investor interest, particularly in the options market. This time, $XRP is at the center of this movement. Institutional interest in #XRP options has increased by 38% in the last two weeks, reaching approximately $98 million in open interest. This level is very close to the all-time high of $102.3 million seen on June 24th.
📈 Volatility Brings XRP to the forefront
Compared to market giants like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), XRP has recently attracted investor attention with its sharper price movements. This high implied volatility has led options traders, particularly those seeking yield, to turn to the XRP market.
According to Deribit Metrics data, the total value of open interest in XRP options has jumped from $71 million to $98 million, while the number of option contracts has increased by 26%, reaching 42,414. This increase is not only driven by price movements but also a direct result of institutional strategic interest.
💡 Why Are Institutions Turning to XRP Options?
One of the main reasons why XRP has attracted attention in the options market is its high implied volatility. Lin Chen, Head of Business Development at Deribit Asia, stated that XRP has yielded over 300% year-over-year, and that high volatility has led to strong interest in options contracts.
Investors often aim to profit during such periods by selling cash-secured put options. This strategy provides insurance against price declines and offers the opportunity for additional returns through the premiums generated by high volatility.
🐂 Bulls in the Field: Bullish Expectations Prevail
The overall market trend is clearly bullish. Deribit's 25-delta risk reversal indicators are providing positive signals for short-term XRP options. This suggests that investors are positioning themselves to profit from XRP's rise, rather than anticipating a decline.
📊 Open Call Options: 30 million
📉 Open Put Options: 11.92 million
⚖️ Put-Call Ratio: 0.39
This extremely low put-call ratio highlights the strength of bullish sentiment in the market.
🔍 Conclusion: Institutional Players Are Betting on XRP's Rise
XRP has once again become a focal point in the cryptocurrency ecosystem, not only due to its technical indicators but also due to institutional activity in the options market. The near-record open interest reflects investors' desire to capitalize on XRP's price volatility.
If high volatility and positive market sentiment persist, it wouldn't be surprising if XRP tests new highs not only in the options markets but also in the spot market.
