Ripple's Q1 2025 XRP Markets Report Shows a Sharp Increase in Spot Trading Volume

This article shows a sharp increase in XRP spot trading volume. Average daily volume reached $3.2 billion across major centralized exchanges.

"808080The first quarter of 2025 saw a sharp rise in XRP spot trading volume, according to Ripple’s Q1 2025 XRP Markets Report. Average daily volume reached $3.2 billion across major centralized exchanges.

The report by Ripple, a major cryptocurrency firm, highlighted a significant surge in XRP spot trading activity during the first quarter of 2025.

According to the report, average daily trading volume on major centralized exchanges, such as Binance, Upbit, and Coinbase, reached $3.2 billion. This marks a substantial increase from the previous quarter.

Trading activity attained peak levels in late January and early February, with one day seeing trades exceeding $16 billion. The volume later declined in March but remained elevated compared to prior months.

Among the exchanges, Binance claimed the largest share of XRP trading volume at 40%, followed by Upbit with 15% and Coinbase at 12%. A majority of trades were executed in USD or USD-pegged stablecoins, with their share increasing from 25% in Q4 2024 to 29% in Q1 2025.

This shift suggests an inclination toward fiat-based trading. Notably, XRP's price reached a high of $3.40 during this period, marking its highest price point since January 2018.

According to Ripple's data, XRP outperformed both Bitcoin and Ethereum over the same timeframe.

Credit: ArthCrypto

XRP Investment Products Attract $214 Million in Q1 2025

In a positive development, strong inflows were observed into XRP-based investment products in Q1, as per the report.

These products, such as funds or instruments that provide investors with exposure to XRP without directly holding the token, saw a year-to-date inflow of $214 million by the end of Q1 2025.

The report further notes that the Securities and Exchange Commission (SEC) dropped its appeal in the ongoing case against Ripple. This legal development removed uncertainty and made XRP more accessible in U.S. markets.

Moreover, asset manager Franklin Templeton applied for an XRP exchange-traded fund (ETF), which is a regulated investment vehicle that tracks the price of a specific asset. However, the SEC delayed its decision on the application until June 2025, citing the need for further review and public input.

Also, the Chicago Mercantile Exchange (CME) announced the launch of XRP futures on May 19, 2025. These contracts enable traders to speculate on XRP's future price. In addition, Volatility Shares submitted filings for three XRP ETFs.

Daily Volume Drops 86% Since December 2024

While XRP's overall quarterly spot volume increased, daily trading data tells a different story. Analyst Steph, citing Arkham data, highlighted a steep drop in daily XRP volume.

It decreased from $60 billion in December 2024 to below $8 billion by early May 2025. This figure represents the combined trading volumes on major centralized exchanges (CEXs).

The chart showcases a peak in mid-December 2024, with several days seeing volume surge above $40 billion and one day nearly reaching $60 billion.

This period coincides with heightened activity on Binance and Bybit, denoted by the dominant purple and orange bars in the volume component. However, commencing January 2025, volume began a downward trend.

suggesting diminished participation from both institutional and retail traders. Throughout this period, Binance consistently contributed the largest share of volume, followed by Bybit and OKX, although none attained their previous highs.

This divergence between quarterly and daily figures might indicate periods of concentrated trading in short bursts—evidently, late January and early February saw particularly high volume.

On-Chain XRP Transactions Drop 37% on XRPL

The report also highlighted a decrease in activity on the XRP Ledger (XRPL) in Q1 2025. XRPL is a decentralized blockchain used to transfer XRP and supports various functions, such as issuing tokens or interacting with decentralized finance (DeFi) tools.

The number of transactions on XRPL dropped by 37.06%, decreasing from 167.7 million in Q4 2024 to 105.5 million in Q1 2025. Similarly, the number of newly created XRPL wallets fell by 40.28%, decreasing from 709,545 to 423,727.

The report also noted that the amount of XRP burned in transaction fees decreased by 30.89%. In XRPL, a small fee for each transaction is paid in XRP and permanently removed, or “burned,”