Author: Tom Mitchelhill, CoinTelegraph; Compiled by: Deng Tong, Golden Finance

Analysts warn that Ripple’s native XRP token will be depleted as the asset’s price surges to its highest level since 2021 May experience “leverage driven” increases.

In a December 1 article for It surged sharply within the week and warned that a sharp rise could lead to a rapid sell-off.

"Open interest has risen 37% - watch for volatility. The last similar event resulted in a 17% decline."

"Stay sharp and manage accordingly Risk. ”

Source: Maarten Regterschot

According to data from CoinGlass, XRP’s open interest has surged 30% in the past 24 hours, reaching $4 billion on major exchanges and trading platforms.

At the time of publication, XRP was changing hands at $2.39, up 68% over the past month, according to TradingView data.

XRP gained nearly 70% last week. Source: TradingView

After Donald Trump won the election on November 6, XRP began to rise alongside major crypto assets including Bitcoin and Solana, but XRP’s performance has already begun to outperform. to other major tokens.

On December 1, XRP’s market value surpassed Solana, and has since surpassed Tether, becoming the third largest crypto asset in terms of total value.

XRP’s exceptional value for money stems from a growing list of key partners, new product developments from Ripple Labs, the possibility of an XRP ETF, and Elon Musk’s significant investment in XRP and Ripple unconfirmed rumors.

Asset manager 21Shares filed for an XRP ETF on November 1, 2024, raising investor concerns about the U.S. Securities and Exchange Commission (SEC), which may be led by new leadership in January 2025. Expectations for approval of ETF applications.