XRP News Today: XRP ETFs Boom vs. On-Chain Freefall: Can Institutional Demand Prevail?

The XRP market is navigating a complex landscape of conflicting signals, with institutional interest in the cryptocurrency surging through the launch of multiple spot ETFs, while on-chain fundamentals remain under pressure. Bitwise and 21Shares recently debuted their XRP ETFs, joining a growing list of providers offering regulated exposure to the asset. These products, including the 0.34%-fee Bitwise XRP ETF and the TOXR ticker from 21Shares according to reports, reflect a broader trend of institutional validation for XRP. However, the price action has been muted, with XRP trading below $2 despite the ETF-driven optimism according to data. This divergence between market structure and technical performance underscores the challenges facing the asset as it seeks to balance regulatory progress with on-chain activity.

On-chain metrics tell a story of declining network usage, with XRP's account-to-account payment volume plummeting by roughly 50% in the last month. The drop in transaction count is equally stark, with daily activity falling to 686,000 transactions on Nov. 24-well below the 1.2-1.5 million range seen earlier in November according to data. These figures highlight a weakening demand for XRP's core function as a medium of exchange. The network's user base appears stagnant, and technical indicators such as the RSI hovering near oversold levels suggest a fragile price structure. While the price has not yet fallen in line with these fundamentals, analysts caution that the disconnect could either signal a temporary market correction or a delayed repricing of the asset's fundamentals according to reports.

The ETF launches, however, have introduced new dynamics. The Bitwise XRP ETF recorded $22 million in trading volume on its first day, despite XRP's 7% drop below $2 according to reports. This volume, though robust, has not translated into sustained price strength, echoing earlier ETF debuts like Canary Capital's XRPC, which also failed to spark a lasting rally according to data. Market participants are grappling with the reality that institutional inflows, while positive, may not immediately offset selling pressure from large holders. Whale activity has been particularly notable, with 200 million XRP sold in 48 hours following the ETF launch. Such liquidity events, combined with a declining share of XRP in profit now at 58.5%, the lowest since late 2024, point to a structurally weak market.

Regulatory clarity has undeniably broadened access to XRP. The SEC's approval of spot XRP ETFs, including Franklin Templeton's and Grayscale's products according to reports, marks a pivotal shift in the asset's institutional adoption. These products offer U.S. investors a regulated on-ramp to XRP without direct token ownership, potentially deepening liquidity and attracting pension funds and advisors in the long term according to analysis. Yet, the immediate impact remains constrained by macroeconomic factors. The broader crypto market's sell-off, driven by Bitcoin's drop below $86,000 and over $220 million in liquidations according to data, has overshadowed XRP's ETF-related optimism.

Looking ahead, the path for XRP hinges on reconciling these competing forces. While ETFs provide a foundation for future inflows, on-chain fundamentals must stabilize to support a bullish case. Analysts note that a rebound in payment volume and transaction activity would be necessary for any meaningful price recovery according to reports. For now, the market remains in a delicate balancing act, with XRP's ability to outperform Bitcoin in December dependent on whether institutional demand can outweigh structural selling pressures and macro volatility.