- XRP surged to $3.31 in January 2025, marking a 255% gain post-election.
- RippleNet transaction volume now nears one million per day.
- SEC case is nearing resolution; ETF filings remain under review.
By May 30, XRP had dropped to $2.18 — a 34% fall from its January peak — as investor confidence waned sharply.
The Trump administration’s crypto-forward campaign had triggered strong optimism, but unmet expectations have since cooled the market.
Drivers of the Rally: Regulation Promises and ETF Momentum
Trump’s pro-crypto stance included regulatory reform, domestic mining incentives, and plans for a federal digital reserve. Market response was overwhelmingly positive — Bitcoin and Ethereum rose sharply, and Dogecoin doubled. XRP outpaced them all, surging 255% amid speculation of inclusion in federal reserves.
However, the Strategic Bitcoin Reserve and Digital Asset Stockpile unveiled in March were not new acquisitions but a restructuring of already-seized assets.
Investors hoped the SEC lawsuit would be swiftly resolved under the new administration, unlocking institutional investment opportunities.
XRP-based ETF applications were filed, Ripple launched its RLUSD stablecoin, and RippleNet daily usage surged to nearly a million transactions.
Reality Bites: Federal Plans Fall Short
XRP peaked just before Trump’s January 20 inauguration and has declined steeply since. Ethereum and Dogecoin dropped more than 27%, while Bitcoin fell 25% before rebounding. XRP saw the sharpest decline.
The expected federal accumulation of XRP did not materialize. The portfolios involved only pre-seized digital assets, dampening enthusiasm across the board.
Wider market jitters, including trade war fears and inflation concerns, created a risk-off environment that XRP, being a cross-border token, felt more acutely.
Long-Term Potential Holds Firm
Despite short-term losses, XRP maintains key advantages. RippleNet’s infrastructure continues to be widely adopted, and the RLUSD stablecoin supports global liquidity solutions.
Although the SEC had agreed to settle the long-standing lawsuit for $50 million, a federal judge rejected the deal over procedural and jurisdictional grounds.
Meanwhile, major financial institutions are waiting for clearer regulation before proceeding with XRP-based ETFs.
The second half of 2025 may still bring legislative progress. A favorable policy shift could reignite interest and reframe XRP’s trajectory.
For now, XRP remains weighed down by unmet policy hopes, despite having the technical foundation to rebound quickly.
