In a bold declaration that sent ripples through the digital asset space, Ripple’s latest market report reveals that XRP surged by 280% in the fourth quarter of 2024. This remarkable rally wasn’t just a fluke—it was fueled by a confluence of macroeconomic shifts, institutional adoption, and pivotal regulatory developments. From Donald Trump’s election win to a dovish Federal Reserve stance, the stars aligned to create what many are calling the most transformative quarter in XRP’s history.
The momentum began in earnest after former SEC Chair Gary Gensler resigned, marking a turning point in the long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission. With regulatory pressure visibly easing, investor confidence soared, paving the way for unprecedented price action and on-chain growth.
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XRP Dominates Spot Markets as U.S. Investors Go All-In
One of the most striking findings in Ripple’s report is the dominance of spot trading in driving XRP’s price surge. Unlike previous rallies driven by speculative futures activity, Q4 2024 saw real demand from institutional and retail buyers alike. Daily trading volumes averaged **$5 billion** between mid-November and December—ten times higher than the $500 million recorded just one month prior.
Major exchanges led the charge:
- Binance accounted for 36% of global spot XRP volume
- Upbit followed with 20%
- Coinbase captured 9%
This growing liquidity reflects deeper market maturity and increased trust in XRP as a viable digital asset. Notably, U.S.-based institutional players such as WisdomTree and CoinShares filed preliminary applications for spot XRP ETFs, joining earlier movers like Bitwise and Canary Capital. These filings signal a growing belief that XRP could soon gain approval under updated regulatory frameworks.
Even internationally, momentum is building. Canada is reportedly racing to launch its own XRP ETF ahead of the U.S., further amplifying global interest. Meanwhile, Bitcoin’s climb to $109,000 provided additional tailwinds, with the BTC/XRP trading pair surging 130% over the quarter.
Despite volatility spiking from 40% in early November to over 200% by year-end, investor sentiment remained resilient. By December 30, XRP reached $2.70, marking a staggering 500% increase from its November levels and validating its status as a high-conviction asset in the current cycle.
Expanding Utility: XRP Ledger Growth and Stablecoin Adoption
Beyond price action, Ripple highlighted substantial progress in expanding the real-world utility of the XRP Ledger (XRPL). In Q4 alone, Ripple Payments processed over $70 billion in global transactions, underscoring its role in modernizing cross-border finance.
Central to this growth was the rise of RLUSD, Ripple’s U.S. dollar-pegged stablecoin. Designed as a compliance-first bridge for international payments, RLUSD was integrated into major platforms including:
- Bitstamp
- MoonPay
- Uphold
- Independent Reserve
To ensure transparency, Ripple implemented monthly reserve attestations conducted by independent third-party auditors—setting a new standard for trust in the stablecoin ecosystem.
On-chain activity exploded:
- New wallet creations surged to 709,000 (up from 140,000 in Q3)
- Trustlines on the ledger grew from 7.3 million to 7.9 million
- Over 37,000 new trustlines were linked directly to RLUSD adoption
The decentralized exchange (DEX) ecosystem on XRPL also matured rapidly. Total DEX volume surpassed $1 billion**, with Automated Market Maker (AMM) swaps accounting for **77%** of activity. The AMM feature—launched in March—reported **$774 million in swap volume, a dramatic jump from $31 million the previous quarter.
Technological upgrades further enhanced functionality:
- The XLS-40 amendment introduced decentralized identifiers (DIDs), enabling self-sovereign identity solutions
- A native oracle protocol was integrated with Band Protocol and DIA, providing real-time price feeds crucial for lending, tokenization, and market-making
These innovations laid the foundation for advanced DeFi use cases on XRPL.
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Institutional Partnerships and Tokenization Breakthroughs
Ripple’s ecosystem expansion attracted significant institutional collaboration. Archax, an FCA-regulated digital asset exchange, partnered with asset manager abrdn to tokenize money market funds on the XRP Ledger—marking one of the first regulated fund tokenizations on the network.
In Europe, Societe Generale announced plans to deploy its MiCA-compliant euro stablecoin, EURCV, on XRPL. This move highlights growing recognition of the ledger’s compliance capabilities and efficiency.
Ripple emphasized that the XRP Ledger offers:
- Settlement finality in 3–5 seconds
- Extremely low transaction fees
- Built-in compliance tools for regulated entities
These attributes make it particularly attractive for banks, payment providers, and financial institutions exploring blockchain-based solutions.
Regulatory Clarity and Legal Developments
While the SEC appeal remains ongoing, Q4 brought meaningful regulatory wins for Ripple. On January 15, 2025, the SEC filed its opening brief—widely criticized by Ripple as rehashing previously rejected arguments. Notably, the appeal does not challenge Judge Analisa Torres’ 2023 ruling that XRP is not a security when sold to retail investors.
Ripple is set to file its response by April 16 and continues to argue that the case lacks legal merit under the new administration’s more favorable stance toward digital assets.
A major policy shift came with the repeal of SAB 121, a controversial accounting rule that discouraged banks from holding crypto assets for clients. The Government Accountability Office (GAO) found the rule violated proper rulemaking procedures, prompting its removal—a victory widely celebrated across the crypto industry.
XRP Holdings and Escrow Transparency
Ripple provided updated figures on its XRP reserves:
- As of December 31, 2024: 4.48 billion XRP held (up from 4.43 billion on September 30)
- Total escrowed XRP decreased from 38.9 billion to 38.03 billion
The company reiterated that escrow releases occur monthly, with unused tokens automatically cycled back into escrow. It also clarified that transfers to third parties—such as ETPs or trusts—are made only when Ripple expects those tokens to remain within its strategic ecosystem.
Average XRP price rose from $0.55 to $1.43 during Q4, while burned XRP increased from 592,000 to 724,000 tokens—reflecting higher transactional usage across the network.
Frequently Asked Questions (FAQ)
Q: Is XRP considered a security after the SEC lawsuit?
A: In 2023, Judge Analisa Torres ruled that XRP is not a security when sold to retail investors on exchanges. The SEC’s current appeal does not challenge this core finding.
Q: What caused XRP’s 280% surge in Q4 2024?
A: The rally was driven by Trump’s election win, a more crypto-friendly regulatory environment, institutional ETF filings, strong on-chain growth, and integration of RLUSD and DeFi tools on XRPL.
Q: How is Ripple using stablecoins?
A: Ripple launched RLUSD, a USD-pegged stablecoin used for cross-border payments and DeFi applications. It’s backed by transparent reserves audited monthly.
Q: Are banks using the XRP Ledger?
A: While direct bank adoption is still emerging, institutions like Societe Generale and abrdn are leveraging XRPL for tokenized assets and compliant stablecoins.
Q: What is RLUSD?
A: RLUSD is Ripple’s U.S. dollar stablecoin designed for fast, low-cost international transactions with full regulatory compliance and regular audits.
Q: Can I buy an XRP ETF now?
A: Not yet—but WisdomTree, CoinShares, Bitwise, and others have filed for spot XRP ETFs in the U.S., indicating potential approvals in the near future.
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Content for informational purposes only. Not investment advice. Past performance does not guarantee future results.