Despite Broader Crypto Market Sluggishness, XRP XRP/USD Has Had a Solid First Quarter of the Year

Despite broader crypto market sluggishness, XRP XRP/USD has had a solid first quarter of the year, according to a recent report.

In the broader cryptocurrency market, most tokens had a sluggish first quarter, but not XRP, according to a recent report.

What Happened: In its Q1 2025 XRP Markets report, Ripple (NYSE:RXL) provided an overview of key developments and market performance for XRP (CRYPTO:XRP).

The token had a strong start to the year, particularly in February when it surged 50%. In comparison, Bitcoin (CRYPTO:BTC) remained flat, and Ethereum (CRYPTO:ETH) saw a decline during the same period.

Investment products tracking XRP witnessed an influx of $214 million in the year-to-date period, closely trailing Ethereum funds, which attracted around $215 million. This indicated an interesting shift in institutional allocators’ preferences.

Meanwhile, spot trading volume on top-tier exchanges averaged $3.2 billion daily, and XRP/BTC ratios saw an increase of over 10%.

After a rally from around $0.30 in January to briefly touch $3.40 in March, XRP's price movements slowed down. Realized volatility ranged from 100% to 130%, a measure of how much, on average, XRP investors collectively lost or made during the quarter.

Among exchanges, Binance (CRYPTO:BNB) led with a 40% share in trading volume, followed by Upbit at 15% and Coinbase (NASDAQ:COIN) at 12%.

However, on-chain activity slowed down during the quarter, with new wallets and transactions decreasing by 30% to 40% quarter-over-quarter. This coincided with the broader crypto market slowdown.

Why It Matters: XRP's strong Q1 can be attributed to accelerating institutional tailwinds. Franklin Templeton (NYSE:TEML) filed an S-1 for a U.S. spot XRP ETF.

The CME Group (NYSE:CME) announced plans for XRP futures, and Brazil's economic and financial crimes council (CONEF) approved the launch of a dedicated XRP ETF.

On the legal side, the U.S. Securities and Exchange Commission dropped its appeal against a judge's ruling that XRP is not a security, and a federal judge ordered the agency to pay part of Ripple's legal fees.

Moreover, the SEC reached a settlement with Ripple for a reduced penalty of $50 million, and the court will now consider vacating the earlier injunction that barred Ripple from selling XRP in the U.S.

A pro-crypto shift in the U.S. administration, following President Trump's departure, also contributed to a positive environment. This included executive orders on crypto and new appointments to key administration roles focused on fostering innovation in the sector.

In another development, Ripple closed a major acquisition, purchasing an advanced technology firm called Hidden Road for $1.25 billion.