Ripple has published its final XRP Markets Report in its current format, unveiling a wave of developments that shaped the company’s position in early 2025.
According to the report, the first quarter delivered a combination of regulatory resolution, institutional partnerships, market growth, and a landmark acquisition that signals a shift in Ripple’s long-term strategy.
The most notable development was the formal end to Ripple’s legal battle with the U.S. Securities and Exchange Commission. The SEC withdrew its appeal in Q1, ending a years-long dispute that had placed regulatory scrutiny on XRP.
Ripple responded by dropping its cross-appeal, leading the SEC to propose reducing the financial penalty from $125 million to $50 million. The agency also requested the court to vacate the injunction, pending final approval from its Commission.
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Hidden Road Acquisition Marks Major Strategic Shift
At the same time, Ripple confirmed the $1.25 billion acquisition of Hidden Road, a major global prime broker. The deal is expected to enhance XRP Ledger adoption and expand the use of RLUSD, Ripple’s stablecoin, for institutional applications.
Hidden Road plans to integrate RLUSD across its collateral and cross-margining systems. It will use the XRP Ledger to streamline its post-trade infrastructure, particularly in the FX and repo markets.
Additionally, the report noted substantial growth in institutions’ adoption of XRP. Franklin Templeton applied for an XRP Spot ETF in the United States shortly after CME Group added XRP futures derivatives to its product lineup.
XRP-based investments have gained rising popularity among investors throughout several international markets. Peak volumes during February surged beyond $16 billion in XRP spot trading activity.
XRP delivered impressive gains of nearly 50 percent to hit $2.70 as its value surpassed most major crypto assets at the beginning of February. Bitcoin held steady at breakeven points as Ethereum and Solana faced substantial market drops.
XRP exchange-traded fund products experienced $37.7 million in investor inflows throughout Q1 while accumulating $214 million since the beginning of the year. Fund inflows for XRP-based products in Q1 stood at $1 million below Ethereum fund inflows globally.
XRP set new trading volume records through spot trades when market activity exceeded $16 billion during the peak of February. Binance maintained its position as trading leader with a 40 percent market share, yet Upbit and Coinbase occupied second and third places with 15 percent and 12 percent, respectively.
The report indicated that XRP spot trading increased its share of trade through USD-stablecoin pairs to 4 percent while showing growing demand from fiat-linked exchanges.
DeFi Resilience and On-Chain Activity See Mixed Results
Despite strong market performance, on-chain metrics showed signs of cooling. Overall transactions on the XRP Ledger declined by 37 percent compared to Q4 2024. New wallet creations dropped by over 40 percent, while the amount of XRP burned for transaction fees declined.
The average cost per transaction remained stable in XRP terms but nearly doubled in USD due to the rising token price.
XRP Ledger demonstrated higher resistance to DeFi disruption than early projections had predicted. Decentralized exchange volume dropped by only 17 percent, whereas other major chains suffered greater declines.
Users maintained their engagement with XRPL’s tokenized system, as evidenced by the 7% increase in trustline creation. RLUSD functioned as the main on-chain utility element, reaching $90 million in circulating supply and achieving over $300 million in cumulative trading activity.
As part of its action points, Ripple made adjustments to its public messaging framework. From Q2 2025 onward, Ripple plans to discontinue the traditional XRP Markets Report publication. The company plans to offer details on XRP positions through its @Ripple and @RippleXDev official social media platforms.
The aggressive use of transparency against Ripple by previous SEC leadership led to its current change in communication practices.
The annual report included information regarding Ripple’s XRP token position. The XRP holdings appear in two ways: liquid assets and assets kept in escrow. The XRP tokens placed in escrow will be released to Ripple for 42 consecutive months through automated processes.
Ripple sends unspent XRP tokens back to escrow except when the company invests them into long-term assets, including trusts or ETFs.
Conclusion
Ripple’s Q1 2025 report marks a turning point for the company. With the legal cloud lifted and a new institutional strategy in motion, Ripple appears positioned for broader adoption. The combination of regulatory clarity, a significant acquisition, and rising investor demand signals that Ripple is transitioning into a new phase of growth and stability.
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