XRP News Today: Ripple CTO explains low XRPL on-chain volume amid 30–40% Q1 drop

Ripple's chief technology officer, David Schwartz, has defended the company's approach to on-chain volume on the XRP Ledger (XRPL), following questions raised by entrepreneur Andrei Jikh on X. Jikh highlighted a lack of verifiable on-chain data to support Ripple’s claim of over 300 bank partnerships in its 13 years of operation. In response, Schwartz engaged directly with the criticism, addressing six key concerns and offering insights into institutional preferences for off-chain settlements [1].

Schwartz explained that many institutions have historically favored off-chain transactions for digital assets due to regulatory, operational, and security concerns. He emphasized that Ripple itself does not use decentralized transactions on the XRPL, despite the network being a public, open-source blockchain. While acknowledging the slow pace of on-chain adoption, he noted a potential shift as institutions begin to recognize the benefits of on-chain activity [1].

The CTO also addressed concerns related to the risks of terrorism financing, stating that “we can’t be sure a terrorist won’t provide the liquidity for payment.” Although he suggested that tools like “permissioned domains” could help mitigate such risks, he did not provide further details on how these would function in practice [1].

Launched in 2012, the XRPL is a foundational blockchain for XRP and has attracted enterprise partnerships, including tokenization initiatives announced in June 2025. However, the lack of transparent tools to track transaction volume and institutional adoption remains a challenge. As of May 2024, platforms like DeFiLlama reported only $81.8 million in total value locked (TVL) in XRPL DeFi applications [1].

Ripple recently acknowledged a 30–40% drop in on-chain activity on the XRPL in the first quarter of 2025, a decline it attributed to broader trends affecting major blockchains like Bitcoin and Ethereum. The company did not provide exact figures but noted that DeFi activity on XRPL was more resilient than other segments, with decentralized exchange volume falling by only 16% quarter-over-quarter [1].

In its Q1 2025 XRP Markets Report, Ripple also announced it would discontinue the report in its current form starting in Q2 2025. The company stated it would continue to provide transparency through its official channels, such as Ripple and RippleXDev, and expressed confidence that increasing institutional engagement with XRP would yield more insights in the future [1].

Despite Ripple’s commitment to transparency, the absence of detailed on-chain metrics continues to fuel skepticism among critics and investors. The company has not responded to inquiries regarding how it will track and report future XRPL volumes [1].

Source: [1] Ripple CTO defends low XRPL volume, says banks settle off-chain (https://coinmarketcap.com/community/articles/688a2302759c0a7d0966bb08/)