What Does Ripple’s Q1 Report Reveal About the Future of XRP?

Ripple Labs has released its Q1 2025 XRP Markets Report, offering a comprehensive look at XRP's performance, institutional traction, and key developments across the ecosystem. 

Here’s a breakdown of the most important insights from the last three months.

XRP Holdings and Escrow: Modest Growth, Strategic Reductions

Ripple ended Q1 2025 with 4.56243 billion XRP in its holdings, up 1.7% from the previous quarter. 

In contrast, XRP held in escrow stood at 37.13 billion, marking a 2.57% decrease. This ongoing reduction aligns with Ripple's long-term strategy to manage XRP’s circulating supply in a predictable, decentralized way. Escrowed XRP continues to be released monthly and re-locked depending on Ripple’s usage, keeping overall inflation in check.

Market Optimism Driven by U.S. Policy Shifts

The crypto market was buoyed in Q1 by a more favorable regulatory tone in the United States. The report credits much of the sector’s optimism to key political moves:

• Former SEC Commissioner Paul Atkins was confirmed as Chairman.
• Donald Trump signed an executive order backing crypto innovation.
• Congress demonstrated bipartisan support for stablecoin legislation, signaling progress toward regulatory clarity.

Ripple also noted the repeal of SAB 121, a rule that had hindered banks from engaging in crypto custody, and welcomed revised FDIC policies and new OCC guidance that affirm the banking sector’s right to interact with crypto. These regulatory shifts are already having a tangible impact on how XRP is perceived in both retail and institutional circles.

SEC Case Closes, Marking a Major Legal Victory

One of the most significant milestones in Q1 was the SEC formally dropping its appeal against Ripple. The regulator also agreed to reduce its proposed penalty from $125 million to $50 million, pending commission approval. With this, a years-long legal battle has effectively come to an end, clearing one of the largest hurdles to XRP’s mainstream adoption.

Ripple has decided to sunset the quarterly XRP Markets Report from Q2 onwards reflects this turning point. Despite the end of the formal report, Ripple has reaffirmed its commitment to transparency, stating that future XRP and ecosystem updates will be available through official channels and its website.

Institutional Interest in XRP Grows Rapidly

Ripple’s Q1 2025 report reveals a surge in institutional interest in XRP, with new financial products and market entries across multiple regions:

• Franklin Templeton filed an S-1 form for a spot XRP ETF in the U.S.
• Volatility Shares filed for three XRP ETF products.
• Brazil’s CVM approved a dedicated XRP ETF, expanding the token's reach in Latin America.
• CME Group launched XRP futures, offering new derivative options for traders.

Despite $37.7 million in weekly outflows, XRP investment products have seen $214 million in total inflows year-to-date, just $1 million short of overtaking Ethereum-based funds globally. 

Ripple Acquires Hidden Road for $1.25 Billion

In one of the largest M&A deals in crypto history, Ripple acquired prime brokerage firm Hidden Road for $1.25 billion. This strategic acquisition aims to integrate Ripple’s RLUSD stablecoin into institutional trading infrastructure.

With RLUSD now being used as collateral across brokerage products, Ripple plans to unlock cross-margining opportunities between crypto and traditional markets. Hidden Road will also begin using XRP Ledger (XRPL) infrastructure for its post-trade operations, including FX and repo settlements.

On-Chain Activity: Cooling After a Heated Q4

The XRP Ledger saw a cooling in activity after the aggressive growth of Q4 2024. The report notes a 30–40% drop in both wallet creation and transaction volume across the ledger. DEX volume also decreased by 16% quarter-over-quarter.

Yet, one bright spot remains: RLUSD’s growth as an on-chain asset. The stablecoin surpassed $90 million in market cap, and its cumulative DEX volume crossed $300 million, proving its relevance in both liquidity and DeFi circles.

Despite overall cooling, XRP’s decentralized ecosystem remains more resilient than many others. Per reports, XRPL continues to outperform other major blockchains in DeFi stability and institutional use cases.

Trading Metrics and Exchange Data: XRP Stands Strong

Average daily XRP trading volumes remained stable in Q1, with $3.2 billion in daily activity across top-tier exchanges. Notably, XRP outperformed BTC and ETH during Q1, with price spikes of nearly 50% in early February.

The XRP/BTC trading ratio rose by more than 10%, showing a stronger appetite for XRP even as other major coins faced corrections.

Exchange distribution remained healthy:

• Binance led with ~40% of global XRP volume
• Upbit followed at 15%
• Coinbase retained a 12% share
• Bybit’s activity dropped sharply after a February hack

Fiat and stablecoin trading pairs grew to 29% of volume, up from 25% in Q4, as more users favored fiat over crypto pairings for XRP.

A New Chapter Begins for Ripple and XRP

With the legal cloud lifted and strong institutional momentum, Q1 2025 may be remembered as a turning point in Ripple’s journey. The end of the XRP Markets Report also signals a shift in how Ripple communicates with the public—leaning more into performance and partnerships, and less into reactive defense.

XRP has matured beyond being a cross-border payments token. It is now part of broader institutional finance, leveraged in ETFs, futures, and brokerage strategies.