XRP Outshines BTC and ETH in Q1 2025 Rally

XRP emerged as a top performer in the crypto space during the first quarter of 2025, outpacing major digital assets like Bitcoin and Ethereum. The latest market update highlights how Ripple’s native token capitalized on favorable developments across legal, institutional, and trading sectors to deliver a standout quarter.

Ripple’s Legal Triumph Transforms Market Outlook

A pivotal moment that helped elevate XRP’s status in early 2025 was its long-awaited legal settlement with U.S. regulators. After a drawn-out battle, the Securities and Exchange Commission opted to abandon its appeal, effectively clearing one of the largest regulatory clouds over the asset. Ripple’s reduced fine—down from $125 million to $50 million—further smoothed the path for institutional adoption, encouraging deeper engagement from players that had previously remained cautious.

This legal clarity served as a catalyst for XRP’s substantial rally, as confidence among investors surged. By February, XRP had climbed by 50%, reaching $3.40—its highest level since 2018. In comparison, Ethereum and Solana faced considerable declines, while Bitcoin saw only slight movement. Even after corrections, XRP held a strong performance with a year-over-year gain of 295%, surpassing Bitcoin’s 47.2% and completely eclipsing Ethereum’s 43.1% drop.

Trading activity bolstered this narrative. In February, XRP peaked at over $16 billion in daily volume and averaged $3.2 billion throughout the quarter. These figures underline the strong demand and speculative interest surrounding the asset during the period. However, not all metrics painted a uniform picture. The XRP Ledger experienced a pullback in usage, with transactional volume dropping by 37% and new wallet creation falling by 40% compared to the previous quarter. Despite this, the strength in price movement and trading volumes carried momentum forward.

Growing Institutional Interest Drives XRP Adoption

XRP’s growth wasn’t limited to the public market. Institutional involvement took a decisive turn in Ripple’s favor. A landmark moment came with Ripple’s $1.25 billion acquisition of prime brokerage firm Hidden Road. This strategic move is set to anchor XRP more deeply into institutional finance ecosystems, especially in currency swaps, repo markets, and foreign exchange settlements.

Hidden Road plans to integrate the XRP Ledger into its post-trade reporting systems and support Ripple’s new stablecoin, RLUSD, as collateral. Such developments indicate a maturing use case for blockchain in traditional finance and a long-term commitment to XRP as a core asset in digital liquidity solutions.

Wall Street is also beginning to embrace XRP’s potential. Franklin Templeton, a legacy investment firm, has submitted its application for a spot XRP ETF in the U.S., while the CME Group introduced XRP futures to their offerings. At the same time, three XRP-based ETFs received regulatory approval through ProShares, all of which signal growing confidence in XRP as a legitimate investment product.

The asset has also made notable inroads internationally. Brazil’s securities commission, the Comissão de Valores Mobiliários, authorized a dedicated ETF for XRP, opening a gateway for Latin American investors to participate. Meanwhile, U.S.-based asset manager Teucrium rolled out a leveraged XRP product, quickly gaining momentum with a $5 million launch volume, placing it among the best-performing ETF debuts of the quarter.

Related: Expert Advice: Sell XRP If You’re Confused

These institutional moves, combined with regulatory milestones and robust market activity, have positioned XRP as one of the standout digital assets in the early part of 2025. As Ripple continues to bridge the gap between decentralized technology and financial mainstream adoption, XRP’s evolving role could prove critical in shaping the broader crypto landscape going forward.