San Francisco-based blockchain company Ripple has developed financial solutions using cryptocurrency XRP. XRP runs on the XRP ledger (XRPL), and XRP, an open source, decentralized blockchain, is designed to promote cross-border transactions. Unlike Bitcoin and Ethereum, XRP aims to streamline international remittances for financial institutions and payment providers primarily.
Ripple’s On-Demand Liquidity (ODL) platform may use XRP to reduce reliance on pre-funded accounts for cross-border transactions, reducing costs and settlement times. This feature contributes to the role of XRP in the digital asset market, particularly among banks and remittance services. Despite regulatory challenges, especially in the US, XRP and XRPL continue to be integrated into a variety of blockchain-based financial applications.
2024 Summary: XRP Market Performance and Institutional Development
In the fourth quarter of 2024, XRP saw significant changes in market value, institutional adoption and network expansion. Q3 Compared to 2024, XRP’s market capitalization increased by 246%, surpassing the 44% growth in BTC, ETH and SOL.
Token prices rose 241% quarterly quarter (QOQ), triggered by increased institutional participation and a broader perception of XRP’s role in financial markets. The small gap between market capitalization and price growth was due to a 1.6% increase in circular supply as previously escrowed tokens entered the market.
Institutional interest in XRP increased throughout 2024, leading to major developments in the fourth quarter. Several asset management companies, including WisdomTree, Bitwise, Canary and 21 shares, have applied for XRP Exchange-Taded Funds (ETFs), indicating a growing institutional awareness.
In Europe, Bitwise’s XRP ETP received direct investment from Ripple. Meanwhile, Grayscale launched the XRP Trust and added it to its institutional investment environment. Additionally, Robinhood has listed XRP and expanded access to retail investors. The XRP ledger (XRPL) ecosystem has also grown significantly, with the number of new addresses in XRPL increasing by the end of 2024, up 115% year-on-year to 507,000.
CLOB trading volumes skyrocketed by 1,140% over the same period, while AMM volumes increased by 3,100%, reflecting XRPL’s evolving liquidity infrastructure. The market capitalization of XRP’s widespread market capitalization rose 259% year-on-year, making it one of the more active digital assets in 2024. Institutional influx, network expansion and financial product development contributed to increased adoption towards 2025.
XRPL growth in 2024 and outlook for 2025
The XRP ledger (XRPL) recorded a network expansion in Q4 2024, strengthening its position as a blockchain for payments and tokenized assets. Compared to the third quarter of 2024, new addresses increased 382% to 507,000, while active addresses increased from 99% to 56,000, indicating an increase in user engagement.
Despite increased network activity, payment transactions have decreased by 8% QOQ, indicating a change in transaction type. This trend suggests that it focuses on automated market makers (AMMs), distributed exchanges (DEXSs), and tokenized assets for XRPL. To support this transition, XRPL reduced the 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 significant liquidity growth in the fourth quarter of 2024. CLOB trading volume increased by 1,140% QOQ, while AMM volume increased by 3,100% QOQ. Furthermore, the volume of DEX transactions peaked at 1.2 million transactions, indicating an increasing demand for XRPL’s distributed trading solutions.
XRPL Innovation and Expanding Use Cases for 2024-2025
Between 2024 and 2025, the XRPL ecosystem was subject to changes driven by innovation, tokenization and institutional adoption. The launch of RLUSD, RIPPLE’s native stablecoin, in December 2024, played a role in expanding XRPL’s liquidity. RLUSD is now available on platforms such as Uphold, Bitso, MoonPay, Archax, Coinmena, Independent Reserve, and Bullish.
Real-world asset (RWA) tokenization has also gained momentum with XRPL. Financial institutions have begun issuing tokenized assets on their networks, including Abrdn’s US Dollar Liquidity Fund via Archax and Aurum Equity Partners’ billion-tokenized funds. Ripple has invested in Openeden’s tokenized T-Bill and Archax’s Money Market Fund, contributing to blockchain-based financial integration. Additionally, SG-Forge announced plans to launch EURCV Stablecoin at XRPL in 2025, expanding its network’s multi-currency framework.
The development of the infrastructure also formed the next stage of XRPL’s growth. The expected XRPL Ethereum Virtual Machine (EVM) Sidechain will be released in early 2025 and will introduce Ethereum-compatible smart contracts to XRPL. This upgrade is intended to enhance network capabilities for NFT, distributed finance (DEFI), and automated financial services. Additionally, new protocol updates have introduced distributed identity (DID) solutions and price Oracles.
Institutional Partnerships contributed to the expansion of XRPL in 2024. MercyCorps Ventures collaborates with Ripple and the Financial Inclusion initiative, and XRPL Snap has been integrated with MetaMask to allow Ethereum users to interact with XRPL-based assets. Additionally, Tennity has launched fundraising programs for XRPL projects in Asia and Europe.
Macroeconomic factors and the role of XRP in financial markets
The macroeconomic environment for 2024 – 2025 is shaped by geopolitical events, monetary policy and liquidity shifts affecting digital asset markets, including XRP and XRPL.
Crypto Policy and Market Reactions
Donald Trump’s return to the White House led to new debates over digital asset policy. In January 2025, Trump signed an executive order declaring blockchain technology and digital assets critical to US financial innovation. The order also established the Cryptocurrency Advisory Committee to provide regulatory clarity and investigate the federal federal Bitcoin Reserve.
At the same time, Trump imposed a 25% tariff on imports from Canada and Mexico, and 10% on Chinese imports, resulting in market volatility. Bitcoin fell below $100,000, and XRP experienced price pullbacks in response to trade tensions.
Global liquidity trends
The Bank of Japan (BOJ) raised interest rates in January 2025, recording an initial rate increase in nearly 20 years. This move has impacted liquidity conditions, particularly affecting speculative markets. The strong presence of XRP in Asia, particularly in Japan and South Korea, means that stricter monetary policies could affect trading volumes in the region.
Meanwhile, growth in M2 money supply, historically correlated with the crypto market cycle, showed signs of expansion in early 2025. As central banks continue to expand their M2 supply, capital inflows into digital assets, including XRP, could increase. However, further financial tightening could counter this trend.
XRP and XRPL development in 2025
XRP and XRPL are positioned for potential growth in 2025 and are supported by network upgrades, institutional participation and evolving market trends. EVM integration enables Ethereum-compatible smart contracts, expanding the Defi functionality of XRPL.
Tokenization remains a focus, and the adoption of RLUSD could potentially increase the liquidity of the ODL corridor. Collaboration with companies like Archax on RWA tokenization strengthens XRPL’s role in asset digitization. Additionally, potential approvals for XRP-centric ETFs in 2025 could impact demand and liquidity.
Regulatory outcomes, particularly on Ripple’s legal challenges to the SEC, could also shape the adoption of XRP. A combination of technological advancements, financial applications, and market dynamics will determine the trajectory of XRP in 2025.