XRP Price Drops 1.376% Amid Institutional Investment Surge

XRP's latest price was $2.78, down 1.376% in the last 24 hours. The Securities and Exchange Commission (SEC) reclassified XRP as a digital commodity in August 2025, which significantly reduced regulatory uncertainties surrounding the cryptocurrency. This decision facilitated a surge in institutional investment, as major industry players recognized the new regulatory clarity. Ripple Labs, the key entity overseeing the infrastructure, saw substantial institutional inflows following the reclassification. The reclassification also led to a notable increase in XRP’s futures open interest, surpassing $1 billion, which indicated heightened adoption by institutional traders across various markets.

Amplify Investments, a U.S.-based asset manager with $12.6 billion in assets, filed for an XRP Monthly Option Income ETF with the SEC, aiming for a November launch. The ETF, which will allocate 80% to XRP instruments and 20% to Treasuries or cash-like assets, is part of a significant increase in crypto ETF applications. This filing reflects changing regulatory landscapes, especially post-July 2025 when rules on ETF creations adjust. Analysts highlight a broader institutional crypto focus, with numerous ETF filings waiting for approval. The approval of the XRP ETF could attract substantial institutional interest, potentially reshaping the landscape of cryptocurrency investment vehicles.

Steven McClurg, CEO of Canary Capital, predicted that XRP’s anticipated spot ETFs could attract $5 billion in inflows within their first month, surpassing Bitcoin and Ethereum ETF launches. This projection underscores XRP’s growing prominence in institutional finance, potentially reshaping cryptocurrency investment dynamics and solidifying its role as a key asset among institutional investors. McClurg highlighted the unique position of XRP on Wall Street, suggesting that its recognition could lead to its outperformance of Ethereum ETFs. The community has begun discussions under hashtags like #xrparmy, reflecting growing anticipation around the potential ETF launch.

Gumi Inc., a major Tokyo-based tech firm, plans a $17 million XRP investment between September 2025 and February 2026 to enhance global blockchain payment services. Gumi’s allocation signifies XRP’s increasing role in international finance, potentially impacting market sentiment and boosting adoption of RippleNet in cross-border transactions. The investment is anticipated to bolster market confidence in XRP, particularly among Japanese corporates. With backing from SBI Holdings, Gumi’s move signals confidence in XRP’s role in cross-border settlements. This commitment underscores blockchain’s growing influence in global finance, emphasizing XRP’s utility in cross-border transactions.

The blockchain behind the XRP cryptocurrency – XRPL – finished the second quarter of 2025 at a record RWA market cap of $131.6 million. Messari’s data revealed that the growth was fueled by newly issued assets announced at XRPL Apex in Singapore. Some of the most important additions included Ondo’s OUSG tokenized treasury fund, Guggenheim’s digital commercial paper, and Ctrl Alt’s tokenized real estate. Despite these high-profile launches, daily engagement metrics highlighted a contrasting slowdown. In the second quarter, most network metrics showed declines, but the notable exception was total addresses, which grew 4% quarter-on-quarter from 6.3 million to 6.5 million. Average daily active addresses fell sharply by 41.2% to 75,200, while total new addresses dropped 46.2% to 305,800, as the network witnessed a reduced engagement from both new and existing users.

Despite this quarterly slowdown, year-over-year figures remain strong, with average daily active addresses up 165.5% and new addresses increasing 219.8%. Average daily transactions on the network also declined 20% in Q2, recording 1.6 million. The stablecoin metrics, on the other hand, stayed strong. At the end of Q2, RLUSD, Ripple’s USD-backed stablecoin, reached a market cap of $65.9 million on the XRPL. This figure represented more than a 49% increase quarter-on-quarter as RLUSD cemented its position as the largest stablecoin on the network. Other launches during the same period included Circle’s USDC, Braza Group’s USDB, Schuman Financial’s EURØP, and StratsX’s XSGD, which has expanded the XRPL stablecoin ecosystem.

Meanwhile, NFT activity on the network staged a strong recovery in Q2 as daily average total transactions climbed 226.9% from 15,400 to 50,400. The primary driver was a tenfold jump in NFT minting, which rose from 3,400 to 37,800 per day, while other NFT transaction types remained mostly unchanged. Interestingly, NFTokenMint reemerged as the dominant transaction type after a quieter Q1 2025, similar to its surge in Q4 2024. By quarter-end, the XLS-20 standard accounted for nearly 13.5 million minted NFTs, including 3.4 million from Q2 2023, 1.8 million from Q4 2024, and 3.4 million from Q4 2023.

Whale investors have increased their XRP holdings sharply in recent weeks. According to Santiment data, whale addresses holding between 10 million and 100 million XRP added 340 million coins over two weeks. This accumulation highlights institutional confidence despite XRP price volatility. Elliott Wave analysis signals potential breakout with support at $2.80. The ETF filing reflects XRP’s growing role in mainstream financial markets, as regulatory shifts favor altcoin ETFs following SEC changes. Increased institutional interest in altcoin financial products is observed, with the potential for significant market reallocation from other assets.

Recent industry discussions highlight shifting dynamics around the digital asset XRP, with notable observations about its evolving market behavior. Data indicates a significant reduction in XRP's price correlation with Bitcoin, dropping from 0.81 in July 2024 to 0.58 by August 2025. This divergence suggests XRP is increasingly moving independently of broader cryptocurrency market trends.

Institutional interest appears robust according to industry executives. Canary Capital's CEO Steven McClurg noted that XRP ranks second only to Bitcoin in recognition among major Wall Street financial institutions. This institutional acknowledgment points toward growing formal acceptance of the digital asset within traditional finance circles despite ongoing regulatory developments.

Market participants continue debating the potential introduction of exchange-traded products tied to XRP. Industry analysts offer divergent perspectives on this development, with some characterizing potential approval as a significant inflection point while others express caution about its long-term implications. Regulatory clarity remains pending as market observers await determinations from governing bodies.

Online cryptocurrency communities demonstrated heightened engagement with XRP during August 2025. The asset emerged among the top discussed digital tokens across social platforms throughout the month, indicating sustained grassroots interest amid shifting market conditions. This occurred alongside ongoing technical consolidation patterns observed in trading activity.