XRP demonstrated notable resilience in trading volume during the first quarter of 2025, maintaining an average daily trading volume of nearly $3.2 billion on major exchanges. Despite this sustained market interest, the XRP Ledger (XRPL) experienced a significant contraction in on-chain activity. This divergence between trading enthusiasm and network usage offers a compelling look into current investor behavior and market dynamics.
Exchange Performance and Market Share
Throughout Q1 2025, XRP's trading volume occasionally surged, particularly in late January and early February when daily volumes exceeded $16 billion. Although activity moderated in March, XRP still outperformed most major altcoins in trading volume, trailing only Bitcoin (BTC) and Ethereum (ETH).
Binance remained the dominant platform for XRP trading, accounting for roughly 40% of the total exchange volume. Other significant contributors included Upbit (15%) and Coinbase (12%). Bybit’s market share declined noticeably following a security incident in February that disrupted platform activity.
Shifts in Trading Pairs and Volume Trends
XRP trading continued to be dominated by stablecoin pairs, with USDT leading the way. However, a subtle shift occurred during the quarter: the proportion of volume traded through fiat pairs increased from 25% in Q4 2024 to 29% in Q1 2025. This suggests a gradual move toward traditional currency channels.
The XRP/BTC volume ratio climbed by more than 10%, indicating XRP’s relative strength against Bitcoin in spot markets. This performance positioned XRP ahead of other leading altcoins such as Cardano (ADA), BNB, and Solana (SOL) in terms of average dollar trading volume.
By the end of the quarter, XRP was trading at $2.09. Its 30-day average daily volume stood at $2.8 billion, while the 90-day average reached $3.3 billion.
Price Volatility and Market Sentiment
XRP’s price experienced considerable fluctuations throughout the quarter. It started below $2.00, peaked at a multi-year high of $3.40 in early February, and retraced to $2.09 by March’s end.
Realized volatility began the quarter at 150%, dipped to around 100% during a calmer market period, and eventually stabilized near 130%. This price movement was largely influenced by regulatory developments and product expansion announcements, though profit-taking and broader market trends also contributed to the retracement.
Despite the volatility, XRP’s closing price at the end of Q1 represented an 89% increase over the average closing price from the previous quarter.
On-Chain Metrics Show Notable Decline
While trading volume remained robust, on-chain activity on the XRPL declined sharply. Total transactions fell by over 37% quarter-over-quarter to 105.5 million, and new wallet creation dropped by 40% to 423,727.
The amount of XRP burned as transaction fees decreased by 31%, and the average transaction cost in U.S. dollars doubled due to the token’s price increase.
DeFi Activity Proves More Resilient
Despite the broad decline in on-chain metrics, decentralized finance (DeFi) activity on the XRPL showed relative stability. Volume on decentralized exchanges fell by only 17%, outperforming similar metrics from Bitcoin, Ethereum, and other major blockchain networks.
Ripple’s USD stablecoin, RLUSD, surpassed a $90 million market capitalization with cumulative decentralized trading volume exceeding $300 million.
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Frequently Asked Questions
What was XRP’s average daily trading volume in Q1 2025?
XRP maintained an average daily trading volume of nearly $3.2 billion throughout the first quarter of 2025, demonstrating strong liquidity despite market volatility.
How did XRP perform compared to other major altcoins?
XRP outperformed most major altcoins including Cardano, BNB, and Solana in terms of trading volume, ranking only behind Bitcoin and Ethereum.
Why did on-chain activity decline despite steady trading volume?
The contraction in on-chain transactions and wallet creation reflects a broader slowdown across crypto networks, possibly indicating a shift toward exchange-based trading rather than on-chain interaction.
Which exchanges dominated XRP trading?
Binance accounted for approximately 40% of XRP trading volume, followed by Upbit (15%) and Coinbase (12%).
What caused the increase in average transaction costs?
Although the amount of XRP burned for fees decreased, the average transaction cost in U.S. dollars doubled due to the rising price of XRP during the quarter.
Did DeFi activity on XRPL follow the same declining trend?
No, DeFi activity proved more resilient than general on-chain metrics, with decentralized exchange volume declining only 17%—outperforming many other blockchain networks.