Ripple Update: XRP Transaction Volume Reaches a High of $16 Billion Yet On-Chain Activity Decreases
In the first half of 2025, the digital asset XRP experienced a significant surge, with its price reaching a local peak of $3.4 on January 16, marking a 44.89% increase between January 10 and 17. This surge was accompanied by a rise in both fiat and stablecoin trades involving XRP, which increased from 25% to 29%. However, a closer look at the on-chain activity reveals a different story.
Despite the price gains and inflows of investment, XRP's on-chain activity has significantly declined. Payments between accounts dropped from nearly 900,000 to about 600,000, and the number of transactions decreased from around 1.5 million to just over 1.1 million in early June 2025. This discrepancy between the surge in XRP spot and derivatives trading volumes and the decline in on-chain activity can be explained by different dynamics affecting market behavior and blockchain usage.
The spike in trading volumes largely reflects speculative trading and derivatives activity rather than direct usage of the XRP Ledger for payments or settlements. Traders may be reacting to news, institutional interest, and legal clarity even if actual on-chain transaction demand has not yet caught up. On the other hand, broader reports indicate that overall XRP Ledger activity has been trending upward throughout 2025, with record highs of over 8 million weekly payments by mid-year, fueled by Ripple’s growing legal clarity and institutional adoption.
Optimism around Ripple’s near-resolution of its SEC case and prospects for XRP ETFs may have boosted trading activity independently of immediate increases in on-chain payments. Regulatory optimism continues to fuel positive sentiment around XRP, with investment products tied to XRP already drawing in $214 million this year.
XRP's impressive trading volumes indicate strong interest from both institutional investors and retail traders. The surge in XRP's trading volumes suggests a major comeback in early 2025, but the sustainability of this momentum is uncertain. Over the past year, XRP has delivered a 298.8% gain, with a 26.9% increase in the last 30 days. However, daily trading volume for XRP has dropped more than 86% in the last six months.
As of today, XRP is up 2.5%, trading around $2.14. The U.S. SEC has dropped its appeal against Ripple, which is a big win for the company. New wallet creations for XRP are down by over 40.28%, hinting at a gap between market hype and the actual use of the blockchain. Despite these concerns, the potential approval of an XRP Spot ETF in the near future continues to fuel excitement in the XRP community.
- The rise in XRP's trading volumes, including options and futures, might be attributed to speculative investment and regulatory optimism, such as the possibility of XRP ETFs and the progress in Ripple's SEC case.
- Though XRP's trading volumes have seen a substantial increase, the number of on-chain transactions and payments has been decreasing, suggesting a discrepancy between market activity and the real usage of the XRP Ledger.
- Institutional investors and retail traders continue to show strong interest in Bitcoin and other digital assets like XRP, potentially fueling the surge in trading volumes, but the sustainability of this momentum remains uncertain.
