Regulatory clarity and upcoming technical changes are fueling growth in XRP-tracked futures. Open interest reached record highs on Saturday, with prices spiking more than 20% over 24 hours.

As of Sunday, XRP and dollar-denominated open interest hit record levels, with over 2 billion tokens (valued nearly at $2 billion) in futures positions anticipated to drive further market volatility.

The spike in XRP prices, which exceeded $1.20, indicates that new capital is swaying the market towards a bullish trend. The surge began late Thursday, coinciding with a lawsuit from 18 U.S. states against the SEC, challenging its regulatory oversight on the crypto industry and its chairman, Gary Gensler.

Investors are optimistic that a pro-crypto administration could positively affect XRP and other tokens connected with U.S.-based firms like Ripple Labs, which is working on launching the RLUSD stablecoin for its cross-border payment solutions. This is expected to enhance liquidity and facilitate faster, cost-efficient transactions, potentially integrating with various DeFi protocols.

XRP has notably outperformed Bitcoin (BTC) and recorded a 2.7% increase in the broader crypto market.

"An increase in both OI and prices typically indicates that new money is entering the market — indicative of a bullish trend."

Gains in XRP also took the weekly increase to over 87%, achieving a three-year price high.