In 2025, XRP rallied to a high of $3.65 in July but subsequently suffered a 48% decline, trading near $1.88 by late December. This downturn occurred despite a series of significant catalysts that typically bode well for asset price appreciation. These events include a decisive resolution to a long-running Securities and Exchange Commission (SEC) legal action, extensive corporate acquisitions by Ripple, and historic inflows into XRP exchange-traded funds (ETFs). Together, these factors illustrate that regulatory victories and institutional interest alone do not guarantee sustained price growth in the volatile crypto market.
Legal Resolution and Market Reaction
After a protracted legal battle beginning in 2020, Ripple reached a settlement with the SEC in August 2025. The agreement followed both parties withdrawing their appeals, effectively upholding a prior ruling that distinguished between institutional sales of XRP and retail transactions. Notably, former SEC Chair Gary Gensler filed a last-minute appeal shortly before his dismissal, echoing the initial complaint's claims.
Upon settlement announcement on August 8, XRP experienced an 8% price increase within a single trading day, accompanied by a surge in trading volume exceeding 146%. Despite this uptick, Ripple's CEO Brad Garlinghouse criticized the SEC's tactics, describing them as a "war of legal terror". He attributed approximately $15 billion in investor losses to the ongoing lawsuit and litigation uncertainty.
Ripple's Aggressive Expansion via Acquisitions
Throughout 2025, Ripple strategically allocated $2.7 billion towards acquisitions to transition from a cryptocurrency payment provider into a full-fledged financial services entity. In April, Ripple invested $1.25 billion in acquiring Hidden Road, rebranded as Ripple Prime. This acquisition marked Ripple as the first cryptocurrency firm to operate a global multi-asset prime brokerage. Ripple Prime has since tripled its transaction volume, currently processing over 60 million trades daily.
In October, Ripple announced the $1 billion acquisition of GTreasury, gaining enterprise-level access to major Fortune 500 clients such as American Airlines Group, Goodyear Tire & Rubber, and Volvo. This deal also exposed Ripple to payment flows exceeding $12.5 trillion annually.
Additionally, Ripple secured smaller yet strategically important acquisitions including a $200 million purchase of Rail in August and wallet solutions provider Palisade. These expansions demonstrate Ripple's intent to broaden its service offerings and institutional reach.
XRP ETFs Garner Institutional Interest but Price Continues to Slide
The launch of XRP spot ETFs in November 2025 attracted considerable institutional interest. The Canary XRP ETF, debuting with $58 million in first-day volume, registered the highest initiation volume among ETF launches that year.
By mid-December, XRP-focused funds accumulated net inflows of $883 million and managed $1.25 billion in assets. Impressively, this inflow streak stretched 30 days without a single day of redemption, marking an unprecedented level of steady demand.
Despite this strong institutional appetite, the XRP price paradoxically declined, resulting in a near 50% loss from the year’s peak.
Performance of Ripple’s Stablecoin RLUSD
In December 2024, Ripple introduced RLUSD, a U.S. dollar-backed stablecoin aimed at leveraging strategic partnerships and global custodial arrangements. Key collaborations included Mastercard for credit card settlements and regulatory approval frameworks established in Singapore.
By year-end 2025, RLUSD attained a market capitalization of $1.3 billion, becoming the 11th largest stablecoin. Additionally, BNY Mellon assumed the role of primary custodian for RLUSD’s reserves in July.
However, despite these positive milestones, RLUSD secured less than 0.7% of the overall stablecoin market, falling short of the growth anticipated within three months of launch.
Factors Undermining XRP’s Price Rally
Three primary delays impeded the market enthusiasm XRP holders expected:
Ripple’s CEO remains optimistic about the CLARITY Act passing in early 2026, though analysts caution that such regulatory developments may prompt short-term volatility characterized by initial buying followed by profit-taking.
Future Developments
Looking forward, Ripple intends to launch native lending capabilities on its XRP Ledger through the upcoming XRPL Version 3.0.0 update in 2026. This advancement aims to evolve the platform beyond payment processing towards institutional-grade decentralized finance (DeFi) applications.
Despite significant achievements in legal, corporate, and institutional realms, XRP’s price trajectory underscores the complex interplay between regulatory environments, market expectations, and asset valuation in the cryptocurrency sector.
Legal Resolution and Market Reaction
After a protracted legal battle beginning in 2020, Ripple reached a settlement with the SEC in August 2025. The agreement followed both parties withdrawing their appeals, effectively upholding a prior ruling that distinguished between institutional sales of XRP and retail transactions. Notably, former SEC Chair Gary Gensler filed a last-minute appeal shortly before his dismissal, echoing the initial complaint's claims.
Upon settlement announcement on August 8, XRP experienced an 8% price increase within a single trading day, accompanied by a surge in trading volume exceeding 146%. Despite this uptick, Ripple's CEO Brad Garlinghouse criticized the SEC's tactics, describing them as a "war of legal terror". He attributed approximately $15 billion in investor losses to the ongoing lawsuit and litigation uncertainty.
Ripple's Aggressive Expansion via Acquisitions
Throughout 2025, Ripple strategically allocated $2.7 billion towards acquisitions to transition from a cryptocurrency payment provider into a full-fledged financial services entity. In April, Ripple invested $1.25 billion in acquiring Hidden Road, rebranded as Ripple Prime. This acquisition marked Ripple as the first cryptocurrency firm to operate a global multi-asset prime brokerage. Ripple Prime has since tripled its transaction volume, currently processing over 60 million trades daily.
In October, Ripple announced the $1 billion acquisition of GTreasury, gaining enterprise-level access to major Fortune 500 clients such as American Airlines Group, Goodyear Tire & Rubber, and Volvo. This deal also exposed Ripple to payment flows exceeding $12.5 trillion annually.
Additionally, Ripple secured smaller yet strategically important acquisitions including a $200 million purchase of Rail in August and wallet solutions provider Palisade. These expansions demonstrate Ripple's intent to broaden its service offerings and institutional reach.
XRP ETFs Garner Institutional Interest but Price Continues to Slide
The launch of XRP spot ETFs in November 2025 attracted considerable institutional interest. The Canary XRP ETF, debuting with $58 million in first-day volume, registered the highest initiation volume among ETF launches that year.
By mid-December, XRP-focused funds accumulated net inflows of $883 million and managed $1.25 billion in assets. Impressively, this inflow streak stretched 30 days without a single day of redemption, marking an unprecedented level of steady demand.
Despite this strong institutional appetite, the XRP price paradoxically declined, resulting in a near 50% loss from the year’s peak.
Performance of Ripple’s Stablecoin RLUSD
In December 2024, Ripple introduced RLUSD, a U.S. dollar-backed stablecoin aimed at leveraging strategic partnerships and global custodial arrangements. Key collaborations included Mastercard for credit card settlements and regulatory approval frameworks established in Singapore.
By year-end 2025, RLUSD attained a market capitalization of $1.3 billion, becoming the 11th largest stablecoin. Additionally, BNY Mellon assumed the role of primary custodian for RLUSD’s reserves in July.
However, despite these positive milestones, RLUSD secured less than 0.7% of the overall stablecoin market, falling short of the growth anticipated within three months of launch.
Factors Undermining XRP’s Price Rally
Three primary delays impeded the market enthusiasm XRP holders expected:
- Legal Delays: The protracted SEC lawsuit resolution until late August stalled institutional participation and ETF launches.
- ETF Launch Timing: XRP spot ETFs only commenced trading in November due to the lawsuit and a concurrent government shutdown.
- CLARITY Act Stalemate: Legislative delays in passing the CLARITY Act prevented necessary regulatory clarity for banks to confidently engage in crypto operations.
Ripple’s CEO remains optimistic about the CLARITY Act passing in early 2026, though analysts caution that such regulatory developments may prompt short-term volatility characterized by initial buying followed by profit-taking.
Future Developments
Looking forward, Ripple intends to launch native lending capabilities on its XRP Ledger through the upcoming XRPL Version 3.0.0 update in 2026. This advancement aims to evolve the platform beyond payment processing towards institutional-grade decentralized finance (DeFi) applications.
Despite significant achievements in legal, corporate, and institutional realms, XRP’s price trajectory underscores the complex interplay between regulatory environments, market expectations, and asset valuation in the cryptocurrency sector.