XRP maintained a robust trading volume of $3.2 billion in the first quarter of 2025, affirming its relevance in the crypto trading landscape. However, despite this resilient market interest, on-chain activity on the XRP Ledger (XRPL) experienced a steep downturn, raising questions about user engagement on Ripple’s decentralized network.
According to Ripple’s quarterly market report, trading activity surrounding XRP remained solid, fueled by both institutional and retail interest, pending regulatory updates, and overall market dynamics. Spikes in trading were especially notable at the end of January and early February, a time when XRP daily spot volumes briefly surged past the $16 billion mark. Still, activity levels dipped moving into March.
Market dominance for XRP trading remained concentrated on major platforms. Binance led by accounting for nearly 40% of the volume. Upbit and Coinbase followed, holding 15% and 12% market shares respectively. Meanwhile, Bybit endured a setback after a February security breach significantly impacted its activity levels.
From a trading pair perspective, XRP continued to be heavily exchanged against stablecoins, specifically USDT. Nonetheless, there was a small uptick in fiat currency pairings, rising from 25% in Q4 2024 to 29% in Q1 2025. This suggests a slight shift toward blending crypto with traditional finance entry points, even as stablecoin pairs remain favored due to their reduced volatility and high liquidity.
In the context of market strength, XRP outperformed several other leading altcoins. Its XRP/BTC ratio rose over 10% during the quarter, vaulting it above Cardano (ADA), BNB, and Solana (SOL) in rolling average volume. By quarter’s end, XRP was priced at $2.09, with a 30-day average daily volume hitting $2.8 billion and a 90-day average nearing $3.3 billion. Only Bitcoin (BTC) and Ethereum (ETH) posted greater volume figures.
The focus keyword XRP also made headlines due to its volatile price performance during this period. Starting the year just under $2.00, it crested at a multi-year high of $3.40 in February before retreating to its March close of $2.09. This sharp cycle was marked by speculative enthusiasm tied to anticipated regulatory clarity and Ripple product updates, followed by natural market correction and profit realization by traders.
Realized volatility mimicked these price swings. It opened the year at 150%, dipped to around 100% during transient calm, and settled back up near 130% by March’s end. Nonetheless, XRP’s closing Q1 price marked an 89% gain over the average price seen in Q4 2024.
Despite strong trading metrics, the XRPL ecosystem faced notable contraction in primary on-chain indicators. Total transactions on the ledger decreased by more than 37%, dropping to 105.5 million, while new wallet creations sank 40% to roughly 423,727. Concurrently, the amount of XRP burned through transaction fees declined by 31%, even as increased token valuation doubled the dollar-based cost per transaction.
Amid these headwinds, decentralized finance (DeFi) activity on XRPL showed more resilience. Decentralized exchange volumes fell a comparatively moderate 17%, which was still better than declines seen on networks like Bitcoin and Ethereum during the same quarter. Additionally, Ripple’s USD-backed stablecoin, RLUSD, emerged as a meaningful player, surpassing $90 million in market cap and topping $300 million in cumulative DeFi transaction volume.
In summary, XRP’s market performance in Q1 2025 demonstrates proof of its strong positioning among top digital assets. While activity on XRPL declined sharply, high trading volumes and improved fiat integration suggest that investor interest—particularly from the short-term trading crowd—remains intact. Ripple’s ecosystem evolution, including its stablecoin push, may well help restore balance between exchange-driven activity and on-chain engagement across Q2 and beyond.
