XRP news today: XRP Spot Trading Volume Surges 400% in Q1 2025, On-Chain Activity Declines 37.06%

XRP, the fourth-largest cryptocurrency by market capitalization, has seen a surge in interest from both institutional and retail investors in 2025. Ripple’s Q1 2025 XRP Markets Report provides a detailed look into the altcoin’s performance, revealing a notable contrast between spot trading volumes and on-chain activity.

Spot trading volumes for XRP experienced a significant increase, with the average daily volume reaching $3.2 billion across major exchanges. This surge was particularly pronounced at the end of January and early February, peaking above $16 billion before gradually declining in March. Binance led the way with around 40% of the total volume, followed by Upbit with 15% and Coinbase with 12%. The share of USD and USD stablecoin volume traded through fiat pairs also rose from 25% in Q4 2024 to 29% in Q1, indicating a growing demand for fiat trading. XRP’s price reached a peak of $3.40, its highest since January 2018, outperforming both Bitcoin and Ethereum during the same period. XRP-based investment products also saw strong inflows, with year-to-date totals reaching $214 million, nearly overtaking global Ethereum funds.

Despite the surge in spot trading volumes, one analyst noted that daily trading volume has plummeted by more than 86% over the past six months. This decline in intraday volume is attributed to retail investors being flushed out of the market. However, the overall market context in 2025, marked by positive regulatory shifts, has helped XRP maintain its appeal. For example, the SEC officially withdrew its appeal, closing a multi-year lawsuit. Additionally, signs of growing institutional confidence include Franklin Templeton filing for an XRP ETF in the US, and Shares seeking approval for three XRP ETFs.

In contrast to the active spot market, on-chain activity on the XRP Ledger (XRPL) has dropped significantly. The report shows a 37.06% decline in the number of transactions on XRPL, from 167.7 million in Q4 2024 to 105.5 million in Q1 2025. New wallet creations fell by 40.28%, from 709,545 to 423,727. The amount of XRP burned as transaction fees also declined by 30.89%. Meanwhile, decentralized exchange (DEX) volume dropped by 16.94%, from $1 billion to $832 million. Data from DefiLlama reveals that XRPL’s total value locked (TVL) has remained flat in 2025 at around $80 million. Monthly DEX volume hovered around just $3.3 million, which seems disproportionately low given XRP’s position as the fourth-largest crypto asset by market cap.

However, the report suggests that Ripple’s acquisition of Hidden Road could help boost XRPL’s on-chain activity. The acquisition, one of the largest M&A deals in crypto history, is expected to drive more institutional use cases for RLUSD and XRPL. Ripple’s Q1 2025 report paints a two-sided picture: spot trading volume surged, reflecting investor confidence, while the drop in on-chain activity raises questions about XRPL’s practical usage. The report highlights the need for further development and adoption to fully realize the potential of the XRP Ledger.