According to the latest quarterly report from crypto analytics firm Messari, XRP not only held its ground but achieved substantial growth in market capitalization and on-chain activity. This performance contrasts sharply with the total market value of major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), which collectively declined by 22% during the same period.
XRP’s market capitalization increased by 1.9% quarter-over-quarter (QoQ), reaching $121.6 billion. Although the token price rose only 0.5%, the network’s circulating market cap surged due to a 1.4% increase in XRP’s circulating supply. Year-over-year (YoY), XRP’s market capitalization skyrocketed by 252%.
This performance distinguished XRP among large-cap peers. BTC, ETH, and SOL collectively lost significant market value in Q1, signaling growing investor interest in alternatives amid shifting macro and regulatory conditions.
Surging Network Activity and User Engagement
Growth extended beyond market metrics. The XRP Ledger (XRPL) expanded for the second consecutive quarter in key network activity indicators—a trend not observed since Messari began tracking the network in early 2023.
- Daily active addresses grew 142% QoQ, averaging 134,600, reflecting heightened user engagement.
- New wallet addresses increased 12% QoQ and 210% YoY, reaching 568,300.
A notable imbalance emerged between sender and receiver addresses:
- Daily active receivers surged 168% to 127,800.
- Senders grew just 14.5% to 34,300.
Messari attributed this to potential airdrop events, where passive holders temporarily became active receivers.
Transaction volume followed a similar upward trajectory:
- Daily transactions averaged 2.04 million, up 13% QoQ.
- Payment-specific transactions rebounded 36% QoQ to 1.12 million.
Decentralization and Infrastructure Expansion
Infrastructure growth added momentum to XRPL’s ecosystem:
- Active validator nodes spiked nearly 970%, from 886 in Q4 2024 to 9,498 in Q1 2025, signaling greater decentralization or preparation for protocol upgrades.
- The XRPL EVM sidechain testnet launched on March 31, aiming to enable Ethereum-compatible smart contracts within the XRP ecosystem. The mainnet is slated for Q2 2025.
This integration aligns with industry-wide efforts to enhance cross-chain compatibility. By allowing developers to build with Solidity on XRPL, Ripple Labs targets increased activity from Ethereum-native teams.
👉 Explore how EVM compatibility could revolutionize XRPL’s DeFi ecosystem
Strategic Moves: Hidden Road Acquisition
On April 8, Ripple announced a $1.25 billion acquisition of prime brokerage platform Hidden Road, making it the first crypto-native company to control a licensed institutional brokerage service.
Key implications:
- Expected to boost XRP’s institutional adoption.
- Hidden Road plans to integrate XRPL into its post-trade infrastructure and use Ripple’s USD-backed stablecoin, RLUSD, as collateral.
This acquisition bridges XRP with traditional financial infrastructure, potentially enhancing XRPL’s utility in brokerage, settlement, and collateral management.
RLUSD Stablecoin Gains Traction
Ripple’s dollar-pegged stablecoin, RLUSD, saw remarkable growth:
- Market cap reached $44.2 million, up 304% QoQ.
- Its use as collateral on Hidden Road could expand institutional reach.
The rise mirrors broader demand for regulated stablecoins amid tightening global reserve and disclosure rules.
Expanding Institutional Partnerships
Ripple forged integrations with UAE-based Zand Bank and Mamo, embedding Ripple Payments into their cross-border settlement systems. These partnerships position XRPL as a viable payment rail in regions with high remittance volumes and underdeveloped banking systems.
Macro Context and Competitive Edge
XRP’s outperformance occurred despite:
- A bearish crypto market.
- Regulatory uncertainties.
Assets with real-world utility, low volatility, and institutional backing fared better. As regulated infrastructure (e.g., stablecoins, tokenized assets) gains prominence, XRP’s strategy stands out among competitors like Coinbase and Kraken.
FAQs
Q: Why did XRP’s market cap grow despite modest price action?
A: Increased circulating supply (up 1.4% QoQ) and rising institutional demand drove capitalization gains.
Q: How does the EVM sidechain benefit XRPL?
A: It attracts Ethereum developers by enabling Solidity-based smart contracts, expanding XRPL’s DeFi potential.
Q: What’s the significance of the Hidden Road acquisition?
A: It positions Ripple as a crypto-native institutional brokerage, bridging XRP with traditional finance.
👉 Discover more about XRP’s institutional partnerships
Future Outlook
Q1 2025 marked XRP’s resilience amid market downturns. Key developments to watch:
- XRPL EVM mainnet launch in Q2.
- Potential further acquisitions.
- Evolving regulatory frameworks.
XRP’s diversification beyond cross-border payments could solidify its role in a maturing crypto ecosystem.