XRP trading volume demonstrates consistency, despite significant declines in XRP Ledger activity. In Q1 2025, this volume remained at $3.2 billion per day.
State of XRP Trading and XRPL
In Q1 2025, Ripple reported a steady XRP trading volume of $3.2 billion per day. However, there is a stark contraction in XRP Ledger activity, potentially indicating a shift in network utility. Despite the robust trading interest, there is a marked decline in on-chain operations.
Institutional Interest and Ripple's Affairs
Institutional investors are showing substantial interest in XRP, evidenced by $37.7 million in net inflows into exchange-traded products during the first quarter. Ripple's XRP holdings rose to 4.56 billion by March 31. The company plans to expand its quarterly XRP market reports to enhance transparency and build trust.
Regulatory Changes and Their Impact on XRP
Changes in the regulatory landscape may significantly influence disclosures and investor sentiment. Ripple aims to avoid repeating past scenarios with the SEC by moderating its XRP activity reports. It is hoped that future quarters will see a better alignment between trading activities and network utility, positively impacting ecosystem sustainability.
In conclusion, while XRP trading volume remains steady, the decline in XRP Ledger activity raises questions about the future utility of the network. Institutional interest is high, and given regulatory changes, Ripple may adapt to new market challenges.
