The XRP ecosystem entered 2025 with unprecedented momentum, marked by major institutional adoption, regulatory clarity, and technological advancement. After seven years of publishing the XRP Markets Report, Ripple has decided to sunset the report in its current format starting in Q2 2025. While this evolution reflects changing communication strategies, Ripple remains committed to transparency—continuing to share key updates through official channels like Ripple and RippleXDev, and maintaining public access to its XRP holdings at ripple.com/xrp.
This final edition delivers a comprehensive look at the state of XRP markets in Q1 2025, highlighting pivotal developments that are reshaping the digital asset landscape.
Institutional Momentum Builds Around XRP
Q1 2025 saw a surge in institutional interest in XRP, with major financial players launching or advancing new investment products. Franklin Templeton filed an S-1 for a spot XRP ETF in the U.S., signaling strong confidence in regulatory acceptance. CME Group announced the launch of XRP futures, expanding its crypto derivatives suite and offering institutional traders a regulated way to gain exposure. Volatility Shares submitted applications for three separate XRP ETFs, further diversifying market options.
Internationally, Brazil’s Comissão de Valores Mobiliários approved a dedicated XRP ETF, enhancing access across Latin America. In the U.S., Teucrium's 2x Long Daily XRP ETF debuted with $5 million in trading volume—ranking among the top 5% of new ETF launches by initial performance.
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These developments reflect growing confidence in XRP’s compliance posture and long-term value proposition. XRP-based investment products outperformed Bitcoin and Ethereum counterparts, recording $37.7 million in quarterly inflows and bringing year-to-date totals to $214 million—just $1 million shy of overtaking global Ethereum funds.
Regulatory Clarity Emerges in the U.S.
One of the most significant milestones of Q1 was the U.S. Securities and Exchange Commission’s (SEC) decision to withdraw its appeal in the Ripple litigation. This move effectively closes a multi-year legal battle that had cast uncertainty over the entire crypto industry. With Ripple’s cross-appeal also withdrawn and the proposed penalty reduced from $125 million to $50 million, the outcome affirms that facts and legal precedent supported Ripple’s position all along.
The broader regulatory environment is shifting favorably. The new U.S. administration has taken concrete steps toward rational crypto policy:
- Repeal of SAB 121, a controversial accounting rule that discouraged banks from offering crypto custody services.
- New guidance from the Office of the Comptroller of the Currency (OCC) confirming banks’ authority to custody digital assets.
- Clarified FDIC policies enabling traditional financial institutions to explore crypto integration.
- Strong bipartisan support for federal stablecoin legislation, aiming to establish clear rules for issuance and redemption.
Additionally, the SEC dropped or resolved enforcement actions against major platforms including Coinbase, Kraken, Robinhood, OpenSea, and Uniswap Labs—indicating a meaningful softening in regulatory tone.
This evolving landscape is accelerating institutional participation in blockchain-based finance and reinforcing XRP’s role as a bridge between traditional and digital finance.
Ripple Acquires Hidden Road: A Game-Changer for Institutional Use
In one of the largest acquisitions in crypto history, Ripple agreed to acquire Hidden Road, a global multi-asset prime broker, for $1.25 billion. This strategic move unlocks powerful new use cases for both RLUSD (Ripple’s stablecoin) and the XRP Ledger (XRPL).
Hidden Road will begin using RLUSD as collateral across its trading and financing products, enabling cross-margining between crypto and traditional financial instruments. Over time, it will leverage XRPL to streamline post-trade operations—including FX settlements, swaps, and repo transactions—reducing costs and increasing settlement speed.
This integration marks a major leap in blockchain adoption by institutional capital markets infrastructure. It demonstrates how decentralized ledgers can deliver real-world efficiency gains beyond speculative trading.
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XRP Market Performance: Resilience Amid Volatility
Despite macroeconomic headwinds—including escalating tariff tensions and market turbulence—XRP emerged as a top performer in Q1 2025. While BTC hovered near breakeven and ETH/SOL trended downward, XRP surged nearly 50% in early February, reaching prices close to $3.40—the highest since January 2018.
According to CoinDesk Data, average daily traded volume (ADV) on top-tier exchanges held steady at $3.2 billion over the past six months. The XRP/BTC ratio rose more than 10% during the quarter, underscoring its relative strength within the crypto ecosystem.
Exchange volume spiked in late January and early February, peaking above $16 billion, before gradually declining into April. Binance dominated trading activity with approximately 40% market share, followed by Upbit (~15%) and Coinbase (~12%). Bybit’s share dropped significantly after a February security incident.
Notably, the percentage of fiat-denominated trading (USD/USDC) increased from 25% in Q4 2024 to 29% in Q1 2025, suggesting growing onramp activity. However, USDT remains the dominant trading pair for XRP.
On-Chain Activity: Normalization After Growth Surge
Following a strong growth phase in Q4 2024, XRPL experienced a normalization in on-chain metrics during Q1 2025:
| On-Chain Activity | Q4 2024 | Q1 2025 | QoQ Change |
|---|---|---|---|
| Transactions | 167.7M | 105.5M | -37.06% |
| XRP Burned (Fees) | 724K | 500K | -30.89% |
| Avg Cost per TX (XRP) | 0.00345 | 0.00340 | -1.28% |
| Avg Cost per TX (USD) | $0.0048 | $0.0092 | +91.10% |
| DEX Volume (USD) | $1.00B | $832M | -16.94% |
| Trustlines | 7.97M | 8.54M | +7.10% |
| New Wallets | 709K | 424K | -40.28% |
Despite declines in transaction volume and new wallet creation—consistent with broader blockchain trends—DeFi activity proved resilient, with DEX volume down only 16.94%. RLUSD played a key role, surpassing $90 million in market cap** and driving over **$300 million in cumulative DEX volume.
Ripple’s XRP Holdings: Transparency Continues
Ripple maintains transparency around its XRP holdings, reporting data at the start and end of each quarter:
December 31, 2024:
- Total XRP Held: 4,485,366,320
- Escrowed XRP: 38,030,000,005
March 31, 2025:
- Total XRP Held: 4,562,433,147 (+77M)
- Escrowed XRP: 37,130,000,005 (-900M released)
Escrowed XRP is released monthly; any unused portion is returned to escrow. Ripple occasionally supports third-party products (e.g., ETPs) with XRP transfers but retains these assets in its reported holdings unless they are expected to enter circulation.
Frequently Asked Questions
Q: Why is Ripple discontinuing the XRP Markets Report?
A: After careful evaluation, Ripple found that the report’s transparency was sometimes misused against the company. While ending the traditional format after Q1 2025, Ripple will continue sharing updates via official channels.
Q: What does the SEC dropping its appeal mean for XRP?
A: It confirms that XRP is not a security under U.S. law when sold to retail investors—a landmark victory that strengthens market confidence and opens doors for broader adoption.
Q: How will Ripple’s acquisition of Hidden Road impact RLUSD?
A: RLUSD will be used as cross-margin collateral across Hidden Road’s institutional products, significantly increasing utility and demand within traditional finance.
Q: Is XRP still heavily traded against stablecoins?
A: Yes—while fiat pair usage grew to 29%, USDT remains the dominant trading pair for XRP globally.
Q: Where can I view Ripple’s current XRP holdings?
A: Updated figures are publicly available at ripple.com/xrp.
Q: Will there be future reports on XRP markets?
A: While this structured report ends after Q1 2025, Ripple will continue providing regular updates through press releases, social media, and its official website.
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