XRP maintained robust trading volumes in Q1 2025, averaging $3.2 billion daily on top-tier exchanges, while activity on the XRP Ledger (XRPL) declined significantly. This divergence highlights sustained market liquidity amid shrinking on-chain engagement.
Key Highlights
- Exchange Volume Resilience: XRP ranked third in trading volume, trailing only Bitcoin (BTC) and Ethereum (ETH).
- Stablecoin Dominance: Over 70% of trading occurred via USDT pairs, with fiat pairs rising to 29%.
- Price Volatility: XRP peaked at $3.40** in February before settling at **$2.09 by quarter-end.
- XRPL Contraction: On-chain transactions dropped 37%, and new wallets fell 40%.
Market Performance and Liquidity Trends
Exchange Volume Breakdown
- Binance led with 40% market share, followed by Upbit (15%) and Coinbase (12%).
- Bybit’s share declined after a February security breach.
- Spot volume spikes exceeded $16 billion/day during late January rallies.
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Trading Pair Composition
- USDT/XRP remained the most liquid pair.
- Fiat pairs (e.g., USD, EUR) grew to 29% of volume, signaling mild institutional interest.
- XRP/BTC volume ratio rose 10%, outperforming Cardano (ADA) and Solana (SOL).
Volatility and Price Action
XRP’s price swung between $2.00–$3.40, driven by:
- Regulatory optimism.
- Profit-taking in February–March.
- Broader crypto market corrections.
Realized volatility stabilized at 130% after hitting 150% in January. Quarter-end price reflected an 89% increase from Q4 2024.
XRPL On-Chain Metrics
| Metric | Q1 2025 | QoQ Change |
|----------------------|--------------|------------|
| Total Transactions | 105.5M | –37% |
| New Wallets | 423,727 | –40% |
| XRP Burned as Fees | 31% less | – |
DeFi Bright Spot:
- DEX volume declined only 17% (outperforming BTC/ETH chains).
- Ripple’s stablecoin RLUSD reached $90M market cap.
FAQ Section
Why did XRP trading volume remain high despite XRPL’s decline?
Exchange volume reflects liquidity demand (e.g., arbitrage, speculation), while XRPL metrics track utility adoption. The disconnect suggests traders favored short-term positions over on-chain use.
Which exchanges dominated XRP trading?
Binance, Upbit, and Coinbase collectively handled 67% of Q1 volume.
What caused XRP’s price volatility?
Combination of regulatory news, market sentiment shifts, and profit-taking after rallies.
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Conclusion
XRP demonstrated liquidity resilience in Q1 2025, though its ledger activity mirrored broader crypto slowdowns. Institutional interest in stablecoin pairs and fiat gateways hints at evolving market dynamics.