XRP Sees Surge in Spot Trading Volume Amid Declining On-Chain Activity and Positive Regulatory Developments

XRP Sees Surge in Spot Trading Volume Amid Declining On-Chain Activity and Positive Regulatory Developments

The post XRP Sees Surge in Spot Trading Volume Amid Declining On-Chain Activity and Positive Regulatory Developments appeared on BitcoinEthereumNews.com.

XRP has emerged as a focal point in the cryptocurrency market, with dynamic trading volumes contrasting sharply with its declining on-chain activity. The surge in spot trading reflects increased interest from both institutional and retail investors, indicative of shifting market dynamics in 2025. According to Ripple’s Q1 2025 report, “Despite fluctuations, XRP retains a unique position driven by regulatory clarity and institutional support.” This article explores XRP’s remarkable trading volumes amidst falling on-chain activity, shedding light on its evolving market position and regulatory influences. XRP’s Spot Trading Volume Hits Record Highs Amid Regulatory Advances In recent months, XRP has seen an unprecedented increase in its spot trading volumes, reaching an average of $3.2 billion per day in Q1 2025. This surge reflects a robust demand from both institutional and retail investors. The remarkable peak of over $16 billion in late January and early February highlights a resurgence in trading activity following a period of regulatory uncertainty. Major exchanges now dominate trading, with Binance at the forefront, accounting for about 40% of total trading volume. XRP Spot Exchange Volume Q1/2025. Source: Ripple The increase in trading volume is paralleled by a noteworthy rise in the share of USD and stablecoin transactions, climbing from 25% in Q4 2024 to 29% in Q1. This shift marks a growing trend of interest towards fiat trading environments. Additionally, XRP’s price rallied significantly, peaking at $3.40, demonstrating resilience against competitors like Bitcoin and Ethereum. Investment products linked to XRP also garnered impressive inflows, reaching $214 million year-to-date, nearly parallel to those of Ethereum, signaling robust investor confidence in the asset’s future. Notably, some analysts express caution. “XRP’s daily trading volume has nosedived more than 86% over the past six months,” remarked crypto expert Steph, citing potential vulnerabilities within the current market structure. Daily XRP Trading Volume…