Q1 2025 Ripple XRP: Spotted Volume Increases Dramatically as On-Chain Activity Decreases Significantly
Rewritten Article:
Mixed Signals: Spot Trading Soars While On-Chain XRP Activity Drops in Q1 2025
XRP, the fourth-biggest cryptocurrency by market cap, has been garnering significant attention from institutional and retail investors in 2025. Ripple's recently published Q1 2025 XRP Markets Report provides valuable insights into the altcoin's performance.
A YoY Surge in Spot Trading
The report showcases a remarkable surge in XRP's spot trading volume. Despite remaining steady in Q1, the average daily volume touched $3.2 billion across major exchanges. Notable spikes were observed at the beginning of January and February, peaking above $16 billion before a gradual dip in March. Intriguingly, Binance accounted for approximately 40% of the total volume, followed closely by Upbit (15%) and Coinbase (12%).
An increase in the share of USD and USD stablecoin volume traded through fiat pairs from 25% in Q4 2024 to 29% in Q1 2025 signifies a growing demand for fiat trading. XRP's price also experienced a notable rally, reaching a peak of $3.40 - a height not seen since January 2018 - outperforming both Bitcoin and Ethereum during the same period.
XRP-based investment products also saw impressive inflows, with year-to-date totals reaching $214 million, almost equaling global Ethereum funds.
Yet, one analyst contended that daily trading volume has plummeted by over 86% over the past six months, stating, "XRP volume collapsed from $60 billion in December to under $8 billion now. Retail got flushed out."
Positive regulatory shifts, such as the SEC officially withdrawing its appeal, along with signs of growing institutional confidence like Franklin Templeton filing for an XRP ETF in the US, CME launching XRP futures, and Volatility Shares seeking approval for three XRP ETFs, have helped XRP maintain appeal despite declining intraday volume.
A Drop in On-Chain Activity
Contrasting the active spot market, on-chain activity on XRPL has witnessed a significant decline. The report reveals a 37.06% drop 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%, while the amount of XRP burned as transaction fees declined by 30.89%.
Moreover, Decentralized exchange (DEX) volume dropped by 16.94%, from $1 billion to $832 million. Remarkably, XRPL's total value locked has remained flat in 2025 at around $80 million, and monthly DEX volume hovered around a surprisingly low $3.3 million, given XRP's substantial market cap.
However, Ripple's acquisition of Hidden Road, a leading XRPL service provider, could potentially boost XRPL's on-chain activity.
The contrast between rising spot trading volumes and declining on-chain activity paints a complex picture: a thriving centralized exchange market reflecting increased investor interest and institutional backing, versus a decline in decentralized, on-chain transactions that leaves questions about the practical usage of XRPL.
[1] Ripple officially withdraws lawsuit against U.S. SEC, leading to a positive market outlook for XRP[2] Top XRP Volume Exchanges: Binance, Upbit, and Coinbase dominate the market share[3] Increasing demand for fiat-based trading: USD and USD stablecoin volume rise[4] The impact of legal and market developments on XRP's growth: positive regulatory shifts and institutional interest driving engagement[5] XRP-based investment products attracting substantial inflows in Q1 2025
- Despite the decline in on-chain activity on XRPL, XRP, the fourth-largest cryptocurrency by market cap, has been gaining attention from institutions and retail investors in 2025.
- Ripple's Q1 2025 XRP Markets Report shows a notable surge in XRP's spot trading volume, with an average daily volume of $3.2 billion across major exchanges, and significant spikes at the beginning of January and February.
- The report also reveals that Binance accounted for approximately 40% of the total volume, followed closely by Upbit (15%) and Coinbase (12%).
- The surge in spot trading is further evidenced by an increase in the share of USD and USD stablecoin volume traded through fiat pairs, which rose from 25% in Q4 2024 to 29% in Q1 2025.
- XRP's price also experienced a notable rally, reaching a peak of $3.40 in Q1 2025, outperforming both Bitcoin and Ethereum.
- XRP-based investment products have also seen impressive inflows in Q1 2025, with year-to-date totals reaching $214 million, almost equaling global Ethereum funds.
- However, one analyst contends that daily trading volume has plummeted by over 86% over the past six months, and suggests that retail investors have been flushed out of the market.
- Positive regulatory shifts, such as the SEC officially withdrawing its appeal and signs of growing institutional confidence, like Franklin Templeton filing for an XRP ETF in the US, have helped maintain XRP's appeal despite declining intraday volume.
- On the other hand, on-chain activity on XRPL has witnessed a significant decline, with the number of transactions dropping by 37.06% and new wallet creations falling by 40.28%.
- XRPL's total value locked has remained flat in 2025 at around $80 million, and monthly DEX volume hovered around a low $3.3 million, given XRP's substantial market cap.
- Ripple's acquisition of Hidden Road, a leading XRPL service provider, could potentially boost XRPL's on-chain activity in 2025 and beyond, as the technology and finance landscape continues to evolve with the growing impact of DeFi, Defi, and other cryptocurrencies like Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Cardano, Polkadot, Chainlink, Stellar, and more.
