XRP's On-Chain Momentum and Regulatory Clarity as Catalysts for a $10 Price Target

The XRP Ledger has entered a pivotal phase in 2025, marked by a 19% surge in daily active addresses in late August, reaching 295,000—the highest level of the year [2]. This on-chain activity, coupled with regulatory clarity following the U.S. Securities and Exchange Commission’s (SEC) reclassification of XRP as a digital commodity in secondary markets, has reignited institutional interest. Analysts now argue that XRP’s utility-driven narrative—rooted in cross-border payments and DeFi integration—positions it for a $10 price target, provided macroeconomic and institutional tailwinds align [1].

On-Chain Metrics Signal Renewed Engagement

XRP’s on-chain activity has been a rollercoaster in 2025. After a dramatic drop in daily active addresses from 557,000 to 34,000 in early 2025 [1], the network rebounded sharply in mid-August, with transaction volumes spiking by 500% on August 18 [5]. This surge was driven by a combination of retail adoption, institutional participation, and whale repositioning. However, the momentum has shown signs of volatility: by late August, active addresses had dipped to 38,303 [4], raising questions about the sustainability of the rally.

The 19% increase in active addresses in late August is particularly noteworthy. It suggests renewed interest in XRP’s core use case as a bridge asset for cross-border payments. Ripple’s On-Demand Liquidity (ODL) service, which processed $1.3 trillion in transactions in Q2 2025 [6], continues to underpin this utility. The service’s ability to settle transactions in 3–5 seconds at a cost of under $0.01 per transfer has made it a preferred solution for financial institutions seeking efficiency [4].

Regulatory Clarity Fuels Institutional Adoption

The SEC’s 2025 ruling was a watershed moment for XRP. By removing the legal overhang that had stifled institutional investment for years, the decision paved the way for XRP ETF approvals from major asset managers like Grayscale and Bitwise. These ETFs are projected to inject $5–$8 billion into the XRP ecosystem, creating a direct link between institutional capital and price appreciation [1].

Institutional demand has already materialized. Q2 2025 saw $7.1 billion in XRP purchases by financial institutions, driven by Ripple’s ODL adoption by over 300 banks and fintech firms [6]. This trend is expected to accelerate as Ripple expands its use cases, including the launch of RLUSD, a regulated stablecoin, and integrations with DeFi platforms like Aave [2].

Contrasting XRP’s Utility with High-Potential Alternatives

While XRP’s institutional narrative is compelling, it faces competition from projects like Remittix (RTX), which is targeting the $19 trillion global remittance market with a utility-first approach. RTX’s presale has raised $21.7 million by August 2025, with 624 million tokens sold, and its beta wallet—launched in Q3 2025—supports 40+ cryptocurrencies and 30+ fiat currencies [3]. The platform processes 400,000+ transactions monthly, with a user base of 1.2 million [1], outpacing XRP’s recent on-chain metrics.

RTX’s deflationary tokenomics—burning 10% of transaction fees to reduce supply—create scarcity as adoption grows, a model that contrasts with XRP’s fixed supply. Additionally, RTX’s 0.1% cross-border transaction fees undercut traditional services like Western Union (5–10%) [3], making it a disruptive force in retail-driven PayFi.

The Path to $10: Risks and Opportunities

XRP’s journey to $10 hinges on two factors: sustained on-chain activity and continued institutional inflows. While the 19% surge in active addresses is encouraging, the recent dip to 38,303 addresses [4] highlights the market’s sensitivity to whale selling and macroeconomic shifts. A 10% price decline in late August, despite the on-chain rally, underscores this volatility [5].

However, the long-term fundamentals remain strong. Ripple’s strategic partnerships with Santander and Bank of America, combined with its regulatory compliance framework, provide a robust foundation for adoption [6]. If XRP can maintain its position as the preferred asset for cross-border payments and DeFi, the $10 target becomes plausible—especially if macroeconomic conditions, such as Fed rate cuts, create a favorable environment for risk-on assets.

Conclusion

XRP’s on-chain momentum and regulatory clarity have rekindled optimism about its $10 price target. The 19% surge in active addresses, coupled with institutional adoption, signals a potential breakout. Yet, the rise of projects like RTX—focused on retail accessibility and deflationary tokenomics—introduces competition in the PayFi space. For XRP to succeed, it must continue to demonstrate utility in real-world applications while navigating the volatility inherent in its market.

Source:
[1] XRP's Path to $100 and Its Implications for Wealth Creation
https://www.ainvest.com/news/xrp-path-100-implications-wealth-creation-2508/
[2] XRP News Today: XRP's Legal Clarity Sparks a New Era of ...
https://www.ainvest.com/news/xrp-news-today-xrp-legal-clarity-sparks-era-institutional-trust-growth-2508/
[3] Why Remittix (RTX) Outpaces Solana and Cardano in ...
https://www.ainvest.com/news/remittix-rtx-outpaces-solana-cardano-2025-bull-run-2508/
[4] XRP's Consolidation Pattern and the Implications for a ...
https://www.ainvest.com/news/xrp-consolidation-pattern-implications-potential-breakout-2025-2508/
[5] XRP On-Chain Activity Explodes By 500%, What's Going On?
https://www.mitrade.com/insights/news/live-news/article-3-1059549-20250822
[6] XRP's Distribution Phase and Path to $20: A Bullish ...
https://www.bitget.site/news/detail/12560604937170