Ripple News: XRP Trading Volume Hits $16B But On-Chain Metrics Fall

XRP is making a major comeback in early 2025, with daily spot trading volumes averaging $3.2 billion and even reaching over $16 billion during peak times in January and February. Despite this impressive rise, there are growing concerns about a decline in on-chain activity, hinting at a gap between market hype and the actual use of the blockchain.

So, is XRP truly on the up and up, or is it all just excitement?

XRP Price and Trading Trends in Q1 2025

Over the past year, XRP has delivered a stunning 298.8% gain, including a 26.9% jump in the last 30 days alone. Notably, between January 10 and 17, XRP surged by 44.89%, hitting a local peak of $3.4 on January 16. As of today, XRP is up 2.5%, trading around $2.14.

The price is still rising, but can it keep up the momentum?

Institutional and Retail Interest Driving XRP’s Rally

XRP’s impressive trading volumes show strong interest from both institutional investors and retail traders. Investment products tied to XRP have already drawn in $214 million this year, signaling growing confidence in the token.

A post from Ripple Pundit also points out that fiat and stablecoin trades involving XRP have increased from 25% to 29%, reflecting rising interest in regulated, fiat-backed trading pairs.

But Network Fundamentals Are Weakening

Despite the strong price and trading volume, XRP’s on-chain activity is showing signs of slowing down. XRP Ledger transactions have dropped by 37.06%, while new wallet creations are down by over 40.28%. Even daily trading volume has dropped more than 86% in the last six months.

These changes could point to short-term market fatigue or investors cashing out.

Investor Optimism Runs High

Investor optimism remains strong, fueled by positive regulatory news. The U.S. SEC’s decision to drop its appeal against Ripple is a big win for the company and opens the door for a potential settlement. Additionally, speculation is growing around the possibility of an XRP Spot ETF approval in the near future, a move that could spark another major rally in 2025.

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