- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
XRP Sees Surge in Spot Trading Volume Amid Declining On-Chain Activity and Positive Regulatory Developments
By: bitcoin ethereum news|2025/05/06 21:15:01
0
Share
XRP has emerged as a focal point in the cryptocurrency market, with dynamic trading volumes contrasting sharply with its declining on-chain activity. The surge in spot trading reflects increased interest from both institutional and retail investors, indicative of shifting market dynamics in 2025. According to Ripple’s Q1 2025 report, “Despite fluctuations, XRP retains a unique position driven by regulatory clarity and institutional support.” This article explores XRP’s remarkable trading volumes amidst falling on-chain activity, shedding light on its evolving market position and regulatory influences. XRP’s Spot Trading Volume Hits Record Highs Amid Regulatory Advances In recent months, XRP has seen an unprecedented increase in its spot trading volumes, reaching an average of $3.2 billion per day in Q1 2025. This surge reflects a robust demand from both institutional and retail investors. The remarkable peak of over $16 billion in late January and early February highlights a resurgence in trading activity following a period of regulatory uncertainty. Major exchanges now dominate trading, with Binance at the forefront, accounting for about 40% of total trading volume. XRP Spot Exchange Volume Q1/2025. Source: Ripple The increase in trading volume is paralleled by a noteworthy rise in the share of USD and stablecoin transactions, climbing from 25% in Q4 2024 to 29% in Q1. This shift marks a growing trend of interest towards fiat trading environments. Additionally, XRP’s price rallied significantly, peaking at $3.40 , demonstrating resilience against competitors like Bitcoin and Ethereum. Investment products linked to XRP also garnered impressive inflows, reaching $214 million year-to-date, nearly parallel to those of Ethereum, signaling robust investor confidence in the asset’s future. Notably, some analysts express caution. “XRP’s daily trading volume has nosedived more than 86% over the past six months,” remarked crypto expert Steph, citing potential vulnerabilities within the current market structure. Daily XRP Trading Volume on Centralized Exchanges. Source: Arkham Despite the recent downturn in intraday volumes, pivotal regulatory advancements, such as the SEC retracting its appeal, have fostered a more secure environment for XRP. The introduction of XRP-based ETFs by major players like Franklin Templeton and CME has further validated institutional interest. Declining On-Chain Activity Signals Potential Concerns While trading volumes soar, on-chain activity on the XRP Ledger (XRPL) illustrates a divergent narrative. The Q1 2025 report explicitly outlines a 37.06% drop in transactions on XRPL, from 167.7 million in Q4 2024 to 105.5 million . Additionally, new wallet creations experienced a steep decline of 40.28%, alongside a 30.89% decrease in amounts burned as transaction fees. The activity within the decentralized exchange (DEX) ecosystem has also diminished, with overall volume dropping 16.94% from $1 billion to $832 million . Data from DefiLlama indicates that XRPL’s total value locked (TVL) has stagnated around $80 million , a meager amount for an asset of XRP’s caliber, with monthly DEX volumes hovering at an astonishingly low $3.3 million . XRPL TVL and DEX volume. Source: DefiLlama The Q1 report does offer a glimmer of hope, suggesting that Ripple’s strategic acquisition of Hidden Road, valued at $1.25 billion , could pave the way for increased on-chain utility and institutional applications. As the report evaluates, “Ripple’s acquisition reflects a significant shift towards greater institutional engagement within the XRPL ecosystem,” hinting at potential avenues for rejuvenating on-chain activity. Conclusion Ripple’s Q1 2025 report encapsulates a dual-segmented reality: while XRP’s trading volumes exhibit a robust recovery amidst favorable regulations, a stark decline in on-chain metrics raises pressing questions about the platform’s ongoing utility. Moving forward, observance of both trading activity and on-chain dynamics will be essential for understanding XRP’s market trajectory. Source: https://en.coinotag.com/xrp-sees-surge-in-spot-trading-volume-amid-declining-on-chain-activity-and-positive-regulatory-developments/
You may also like
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point
Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.
The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.
The world belongs to Chinese people who speak English
The world is vast, and only playing half of it is truly a loss.
Why Stop at 126K? Michael Saylor Breaks Down BTC Stagnation and Retail Absence Truth
Bitcoin is digital capital, and I will spend a thousand hours explaining it to you. Eventually, you will understand, but you will still have to endure a 45% crash.
Virtuals Protocol's inaugural Titan project: ROBO aims to give a wallet to a robot
This is a key step in Virtuals expanding the Agent Economy into the Embodied AI and Robotics field.
Stablecoin Latest Report: Actual Distribution and Circulation Much More Notable Than Supply
The Truth about Stablecoin Circulation Speed, Concentration, and Structure After Doubling the Supply
Paradigm's New Arithmetic: When Crypto Can't Hold 12.7 Billion, AI Becomes the Answer
It took Paradigm three years to emerge from the ruins of FTX.
Wintermute Founder: In the Lost Cryptocurrency Market, What Can We Still Do?
This is more like a manifesto, discussing "the very reason we are here."
$1.3 Billion Debt: BitDeer Faces Tough Battle
Wu Jihan is waiting for AI's money to catch up with the speed of debt.
Anthropic's IPO Gamble: At the Most Unlikely Moment, It Chose to Say No
In the AI Era, what is the most valuable thing?
Paradigm's Math Problem: $12.7 Billion, Too Big for a Single Crypto Fund
Emerging from the ruins of FTX, Paradigm took three years
Ethereum Unveils Scaling Roadmap, What's Different This Time?
Short-term improvements to execution efficiency through the Gas mechanism optimization and block validation parallelization, and long-term scalability through ZK-EVM and blobs data architecture.
Anthropic Ban Wave, OpenAI $100 Billion Funding Controversy: What Is the Overseas Crypto Community Talking About Today?
What Have Foreigners Been Most Interested in Over the Last 24 Hours?
Morning News | OpenAI receives $110 billion investment; Solana launches Solana Payments; M0, MoonPay, and PayPal jointly launch PYUSDx
Overview of Important Market Events on February 27
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point
Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.
The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.
App