
Despite broader crypto market sluggishness, XRP (CRYPTO: XRP) has had a solid first quarter of the year, according to a recent report.
What Happened: In its Q1 2025 XRP Markets report, Ripple provided key developments and market performance of XRP.
The token rallied 50% in February, outperforming both Bitcoin (CRYPTO: BTC), which was flat, and Ethereum (CRYPTO: ETH), which trended lower.
XRP investment products saw $214 million in inflows year-to-date, just $1 million shy of Ethereum fund inflows globally, highlighting a surge in institutional interest.
Spot trading volume on top-tier exchanges averaged $3.2 billion daily, with XRP/BTC ratios climbing by over 10%.
XRP briefly touched $3.40 before cooling off, while realized volatility ranged from 100% to 130%.
Binance dominated trading volume with 40% market share, followed by Upbit (15%) and Coinbase (12%).
Despite this strong performance, on-chain activity slowed, with new wallets and transactions falling 30–40% quarter-over-quarter, mirroring the broader market cooldown.
Also Read: Bitcoin, Ethereum, XRP, Dogecoin On A Knife’s Edge Ahead Of Wednesday’s Federal Reserve Decision
Why It Matters: XRP's Q1 rally appears to be fueled by accelerating institutional tailwinds: Franklin Templeton filed an S-1 for a U.S. spot XRP ETF.
The CME Group announced plans for XRP futures and Brazil's regulators greenlit a dedicated XRP ETF.
On the legal front, the SEC dropped its appeal in the Ripple case, and Ripple settled with a reduced $50 million penalty, with the court potentially vacating the earlier injunction.
A pro-crypto shift in the U.S. administration, under President Trump, has also boosted sentiment, with executive orders and new appointments signaling market-friendly regulation.
Ripple also closed a major acquisition, purchasing Hidden Road for $1.25 billion to scale up institutional RLUSD and XRP Ledger use cases.
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