Altcoins made a significant rebound on Tuesday after experiencing a notable sell-off in the preceding 48 hours, as traders took advantage of the lower prices to enter the market again.
XRP spearheaded the recovery, surging 6% within the last 24 hours. Solana (SOL) and Dogecoin (DOGE) each rose approximately 4.5%, while Ethereum (ETH) gained 5% during the same timeframe. Open interest in these tokens also increased, indicating renewed speculative engagement. XRP stood out once more, with its open interest growing by 4.2% in the last day.
This uptick coincides with CME Group’s announcement earlier on Tuesday that its crypto futures offerings have exceeded $30 billion in notional open interest for the first time. SOL and XRP futures each surpassed the $1 billion threshold, with XRP becoming the fastest contract to achieve this milestone—doing so in just over three months. Analysts interpret this achievement as a sign of market maturation and increasing institutional involvement in crypto derivatives, not to mention the potential interest a spot XRP ETF might attract.
“I think people might be underestimating demand for spot XRP ETFs,” noted ETF specialist Nate Geraci.
The broader market also showed signs of strength, with the CoinDesk 20 Index (CD20) rising 3.6% on Tuesday. Bitcoin (BTC) trailed behind, increasing by only about 1%, yet managed to regain the $111,000 mark after dipping below $109,000 earlier in the day.
Both Bitcoin and Ether reached all-time highs earlier this month, fueled by expectations of monetary easing and heightened institutional interest. However, sentiment may be running excessively optimistic, according to blockchain analytics firm Santiment. In a report released on Sunday, the firm cautioned that enthusiasm surrounding a possible Federal Reserve rate cut in September has reached levels often seen before corrections.
“While optimism about a rate cut is driving the market, social data indicates that caution is advisable,” Santiment stated, highlighting a surge in online discussions regarding the Fed’s decision. The firm warned that if easing expectations do not materialize, the market could face a “swift correction.”
Traders are now focused on Friday’s release of the Personal Consumption Expenditures (PCE) Price Index as a crucial indicator for the Fed’s upcoming actions.
