The first quarter of 2025 saw XRP maintain strong trading momentum on global exchanges, with an average daily trading volume (ADV) hovering near $3.2 billion—a figure that places it among the most liquid digital assets in the market. Despite this resilience in trading activity, on-chain usage of the XRP Ledger (XRPL) declined significantly, revealing a growing divergence between exchange-based trading behavior and native blockchain engagement.
This performance underscores XRP’s unique position in the crypto ecosystem: a digital asset with robust market liquidity and sustained investor interest, even amid broader network-level slowdowns and regulatory uncertainty.
Strong Exchange Liquidity Amid Market Volatility
XRP outperformed most major altcoins in terms of trading volume during Q1 2025, trailing only Bitcoin (BTC) and Ethereum (ETH) in absolute dollar terms. According to Ripple’s official Q1 2025 markets report, XRP’s 90-day ADV reached $3.3 billion, while its 30-day ADV settled at $2.8 billion by quarter-end.
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Notably, XRP experienced sharp volume spikes in late January and early February, with daily volumes exceeding $16 billion—a surge attributed to heightened speculation around regulatory developments and institutional positioning. While activity cooled in March, the token remained a staple across major trading platforms.
Binance led the pack, accounting for approximately 40% of total XRP exchange volume. Upbit followed with 15%, and Coinbase captured 12%. Bybit’s share declined notably after a platform security incident disrupted trading flows in February.
These figures reflect XRP’s deep integration into global spot markets and its appeal to both retail and institutional traders seeking high liquidity and rapid execution.
Stablecoin Pairs Dominate XRP Trading
A key trend in Q1 was the continued dominance of stablecoin-denominated trading pairs. USDT/XRP remained the most traded pair, reinforcing the preference for stablecoin-based on-ramps in volatile markets.
However, there was a modest but meaningful shift toward fiat-linked trading: the share of XRP volume conducted via fiat pairs (such as KRW, USD, and EUR) rose from 25% in Q4 2024 to 29% in Q1 2025. This suggests growing adoption through regulated exchanges and traditional financial rails.
Additionally, the XRP/BTC trading ratio increased by over 10% during the quarter, indicating stronger relative demand for XRP within the crypto-to-crypto trading corridor. This outperformance placed XRP ahead of major competitors like Cardano (ADA), BNB, and Solana (SOL) in rolling average dollar volume.
Price Surge Followed by Sharp Correction
XRP’s price trajectory in Q1 mirrored the broader crypto market’s rollercoaster ride. It began the quarter below $2.00**, climbed to a multi-year high of **$3.40 in early February, then retraced to close at $2.09 by March 31.
This rally was fueled by optimism surrounding potential regulatory clarity in the U.S. SEC lawsuit and Ripple’s expanding product suite, including cross-border payment solutions and stablecoin initiatives. However, profit-taking and macroeconomic recalibrations led to a sharp pullback.
Despite the correction, XRP ended Q1 with an 89% higher average closing price compared to Q4 2024—highlighting strong underlying demand.
Market volatility reflected this turbulence: realized volatility started the year at 150%, dipped to around 100% during a brief calm, then rebounded to stabilize near 130% by quarter-end.
On-Chain Activity Declines Across Key Metrics
While exchange volume remained robust, activity on the XRP Ledger (XRPL) contracted sharply.
- Total transactions fell by 37% quarter-over-quarter, dropping to 105.5 million.
- New wallet creation declined by 40%, totaling 423,727 new addresses.
- XRP burned as transaction fees decreased by 31%, even as average transaction costs in USD doubled due to the rising XRP price.
These figures align with broader trends across major blockchains, where on-chain activity slowed amid reduced speculative fervor and macroeconomic caution.
Yet, decentralized finance (DeFi) on XRPL demonstrated relative resilience. Decentralized exchange (DEX) volume dropped only 17%, outperforming DeFi activity on Bitcoin, Ethereum, and other leading networks.
RLUSD Gains Traction in DeFi Ecosystem
One bright spot in XRPL’s on-chain landscape was RLUSD, Ripple’s USD-pegged stablecoin. It surpassed $90 million in market capitalization** during Q1 and recorded over **$300 million in cumulative decentralized trading volume.
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RLUSD’s growth signals increasing confidence in Ripple’s vision for a compliant, efficient digital dollar solution—particularly for cross-border payments and institutional use cases.
Its integration into XRPL-based DEXs like Sologen and Flare Finance has helped sustain DeFi activity despite overall network contraction.
FAQ: Understanding XRP’s Q1 Performance
Why did XRP trading volume stay high while on-chain activity dropped?
High exchange volume reflects strong investor interest and short-term trading demand, often driven by price volatility and macro sentiment. In contrast, on-chain activity depends on real-world usage like payments, DeFi interactions, and wallet creation—which slowed due to broader market conditions.
What does the rise in fiat trading pairs mean for XRP?
An increase in fiat-denominated trading suggests deeper integration with regulated financial systems and growing adoption through licensed exchanges—positive signals for long-term legitimacy and institutional uptake.
Is declining transaction volume a concern for XRPL?
While lower transaction counts are notable, they must be viewed in context. The rise in XRP’s price means each transaction carries higher economic value. Additionally, DeFi resilience and RLUSD growth indicate sustained utility beneath the surface.
How does XRP compare to other altcoins in liquidity?
XRP ranked third in average daily trading volume during Q1, behind only BTC and ETH. It outperformed ADA, BNB, and SOL in consistent liquidity—a testament to its established market presence.
Could regulatory developments impact future trading volume?
Yes. Any resolution to the ongoing SEC litigation or new regulatory clarity could trigger renewed institutional interest and potentially boost both trading volume and on-chain adoption.
What role does Binance play in XRP’s market dynamics?
Binance accounts for about 40% of XRP’s exchange volume, making it a critical liquidity hub. Its listing policies, trading tools, and global reach significantly influence price discovery and market accessibility.
Conclusion: A Tale of Two Markets
Q1 2025 revealed a clear split in XRP’s ecosystem: thriving exchange trading versus contracting on-chain usage. This dichotomy is not unique to XRP but highlights a broader trend where market sentiment drives short-term volume, while real-world utility determines long-term sustainability.
For investors and analysts, the takeaway is clear—XRP remains a top-tier asset in terms of liquidity and market engagement. Its ability to sustain high trading volumes amid volatility speaks to enduring confidence.
Yet, the future hinges on revitalizing on-chain activity through broader adoption, developer innovation, and regulatory progress.
As Ripple continues expanding its financial infrastructure—especially with RLUSD and enterprise payment solutions—the bridge between exchange liquidity and blockchain utility may soon narrow. Until then, XRP stands as a symbol of resilience in uncertain times.