In a quarter where most major cryptocurrencies stagnated, XRP surged ahead, delivering one of its strongest performances in recent years. According to Ripple’s final XRP Markets Report, Q1 2025 marked a breakout period for the token, fueled by a series of legal victories, growing institutional adoption, and robust market performance.
Legal Victory Fuels XRP’s Surge
XRP’s impressive momentum is largely attributed to its legal victory against the U.S. Securities and Exchange Commission (SEC). Ripple CEO Brad Garlinghouse celebrated the SEC’s decision to drop its appeal, ending years of litigation. The legal resolution also included a reduction in Ripple’s $125 million fine, bringing it down to $50 million and paving the way for increased institutional interest.
Market Rally and Strong Performance
XRP’s success wasn’t limited to the courtroom. The cryptocurrency saw a significant market rally in early 2025, with its price spiking by 50%, briefly reaching $3.40—its highest since early 2018. This occurred while Bitcoin (BTC) and Ethereum (ETH) showed little movement, and other altcoins like Solana (SOL) saw double-digit declines.
Though XRP has since retraced slightly, its current price of $2.12 still represents a 295% year-over-year gain, compared to Bitcoin’s 47.2% increase and Ethereum’s 43.1% decline over the same period.
XRP’s market strength is also reflected in its trading volumes. In February 2025, XRP surpassed $16 billion in daily trading volume, maintaining an average of $3.2 billion daily throughout Q1.
Institutional Demand on the Rise
Beyond price action, institutional demand for XRP is growing. Ripple’s acquisition of Hidden Road, a $1.25 billion brokerage, signals the company’s ambition to integrate XRP into traditional financial infrastructure. Hidden Road plans to use RLUSD, Ripple’s stablecoin, as collateral and to incorporate XRP Ledger (XRPL) in its post-trade processes.
Meanwhile, Wall Street has taken notice: Franklin Templeton has filed for a U.S.-based spot XRP ETF, the CME Group launched XRP futures, and the SEC approved three ProShares ETFs. Ripple’s growing institutional footprint extends to Brazil, where regulators have approved a dedicated XRP ETF, and Teucrium in Vermont, which launched a leveraged XRP ETF.
Challenges and On-Chain Activity
While XRP’s market performance was impressive, its on-chain activity showed mixed results. XRP Ledger (XRPL) transactions fell by 37%, and new wallet creation dropped by 40% compared to Q4 2024, mirroring the broader slowdown of layer-1 networks.
Despite these challenges, XRP’s growth in Q1 2025 solidified its position as a leader in the cryptocurrency market, with Ripple’s report showcasing a promising future for the token.
