Ripple, a San Francisco-based blockchain company, has developed financial solutions utilizing its cryptocurrency, XRP. Operating on the XRP Ledger (XRPL), an open-source, decentralized blockchain, XRP is designed to facilitate cross-border transactions. Unlike Bitcoin or Ethereum, XRP primarily aims to streamline international money transfers for financial institutions and payment providers.
Ripple’s On-Demand Liquidity (ODL) platform uses XRP to reduce reliance on pre-funded accounts in cross-border transactions, potentially lowering costs and settlement times. This function has contributed to XRP’s role in digital asset markets, particularly among banks and remittance services. Despite regulatory challenges, particularly in the U.S., XRP and XRPL continue to be integrated into various blockchain-based financial applications.
2024 Recap: XRP’s Market Performance and Institutional Developments
In Q4 2024, XRP saw significant changes in market value, institutional adoption, and network expansion. Compared to Q3 2024, XRP’s market capitalization increased by 246%, outpacing the 44% growth of BTC, ETH, and SOL.
The token’s price rose 241% quarter-over-quarter (QoQ), driven by increased institutional participation and broader recognition of XRP’s role in financial markets. The slight gap between market cap and price growth was due to a 1.6% increase in circulating supply as more previously escrowed tokens entered the market.
Institutional interest in XRP grew throughout 2024, leading to major developments in Q4. Several asset management firms, including WisdomTree, Bitwise, Canary, and 21Shares, filed for XRP exchange-traded funds (ETFs), indicating growing institutional recognition.
In Europe, Bitwise’s XRP ETP received direct investment from Ripple. Meanwhile, Grayscale launched an XRP Trust, adding to the institutional investment landscape. Additionally, Robinhood listed XRP, expanding access for retail investors. The XRP Ledger (XRPL) ecosystem also saw substantial growth, with the number of new addresses on XRPL increasing 115% year-over-year to 507,000 by the end of 2024.
CLOB trading volume surged 1,140% in the same period, while AMM volume increased by 3,100%, reflecting the evolving liquidity infrastructure on XRPL. With XRP’s circulating market cap rising 259% YoY, it remained one of the more active digital assets in 2024. Institutional inflows, network expansion, and financial product developments contributed to its increased adoption heading into 2025.
XRPL Growth in 2024 and Outlook for 2025
The XRP Ledger (XRPL) recorded network expansion in Q4 2024, reinforcing its position as a blockchain for payments and tokenized assets. Compared to Q3 2024, new addresses increased by 382% to 507,000, while active addresses grew by 99% to 56,000, showing a rise in user engagement.
Despite the increase in network activity, payment transactions declined by 8% QoQ, indicating a shift in transaction types. This trend suggests a growing focus on automated market makers (AMMs), decentralized exchanges (DEXs), and tokenized assets on XRPL. To support this transition, XRPL reduced its base reserve requirement for new accounts from 10 XRP to 1 XRP in December 2025, making network access more feasible.
The XRPL trading ecosystem also recorded notable liquidity growth in Q4 2024. CLOB trading volume increased by 1,140% QoQ, while AMM volume rose by 3,100% QoQ. Additionally, DEX transaction volume peaked at 1.2 million transactions, indicating increased demand for decentralized trading solutions on XRPL.
XRPL Innovations and Expanding Use Cases for 2024-2025
Between 2024 and 2025, the XRPL ecosystem underwent changes driven by innovation, tokenization, and institutional adoption. The launch of RLUSD, Ripple’s native stablecoin, in December 2024 played a role in XRPL’s liquidity expansion. RLUSD became available on platforms such as Uphold, Bitso, MoonPay, Archax, CoinMENA, Independent Reserve, and Bullish.
Real-world asset (RWA) tokenization also gained momentum on XRPL. Financial institutions began issuing tokenized assets on the network, including Abrdn’s US Dollar Liquidity Fund via Archax and Aurum Equity Partners’ $1 billion tokenized fund. Ripple invested in OpenEden’s tokenized T-bills and Archax’s money market fund, contributing to blockchain-based financial integrations. Additionally, SG-FORGE announced plans to launch the EURCV stablecoin on XRPL in 2025, expanding the network’s multi-currency framework.
Infrastructure developments also shaped XRPL’s next phase of growth. The anticipated XRPL Ethereum Virtual Machine (EVM) Sidechain will go live in early 2025, introducing Ethereum-compatible smart contracts to XRPL. This upgrade aims to enhance network functionality for NFTs, decentralized finance (DeFi), and automated financial services. Furthermore, new protocol updates introduced decentralized identity (DID) solutions and price oracles.
Institutional partnerships contributed to XRPL’s expansion in 2024. Mercy Corps Ventures collaborated with Ripple on financial inclusion initiatives, while XRPL Snap integrated with MetaMask, allowing Ethereum users to interact with XRPL-based assets. Additionally, Tenity launched a funding program for XRPL projects in Asia and Europe.
Macroeconomic Factors and XRP’s Role in Financial Markets
The macroeconomic environment in 2024-2025 has been shaped by geopolitical events, monetary policies, and liquidity shifts, influencing digital asset markets, including XRP and XRPL.
Crypto Policy and Market Reactions
Donald Trump’s return to the White House led to renewed discussions on digital asset policies. In January 2025, Trump signed an executive order declaring blockchain technology and digital assets as critical to U.S. financial innovation. The order also established a Cryptocurrency Advisory Council to provide regulatory clarity and explore the feasibility of a federal Bitcoin reserve.
At the same time, Trump imposed 25% tariffs on imports from Canada and Mexico and 10% on Chinese imports, leading to market volatility. Bitcoin dropped below $100,000, and XRP experienced a price pullback in response to trade tensions.
Global Liquidity Trends
The Bank of Japan (BOJ) increased interest rates in January 2025, marking its first rate hike in nearly two decades. This move affected liquidity conditions, particularly impacting speculative markets. XRP’s strong presence in Asia, especially in Japan and South Korea, means tighter monetary policy could influence transaction volumes in the region.
Meanwhile, M2 money supply growth—historically correlated with crypto market cycles—showed signs of expansion in early 2025. Previous liquidity injections in 2017 and 2020 preceded major Bitcoin and altcoin rallies. If central banks continue expanding the M2 supply, capital inflows into digital assets, including XRP, may increase. However, further monetary tightening could counteract this trend.
Developments for XRP and XRPL in 2025
XRP and XRPL are positioned for potential growth in 2025, supported by network upgrades, institutional participation, and evolving market trends. The EVM integration will enable Ethereum-compatible smart contracts, broadening XRPL’s DeFi capabilities.
Tokenization will remain a focus, and RLUSD adoption could potentially increase liquidity in ODL corridors. Collaborations with firms like Archax on RWA tokenization reinforce XRPL’s role in asset digitization. Additionally, the potential approval of XRP-focused ETFs in 2025 could impact demand and liquidity.
Regulatory outcomes, particularly regarding Ripple’s legal challenges with the SEC, may also shape XRP’s adoption. The combination of technological advancements, financial applications, and market dynamics will determine XRP’s trajectory in 2025.
The post XRP ETFs, Wall Street Moves And More — Why 2025 Could Be Huge for Ripple? first appeared on Coinchapter.
The post XRP ETFs, Wall Street Moves And More — Why 2025 Could Be Huge for Ripple? appeared first on Coinchapter.
