XRP 2025 Year in Review: Down 13% Despite SEC Victory and $1B ETF Inflows—What Went Wrong?

Core Insights - XRP's performance in 2025 was disappointing, with a 13% decline despite significant regulatory wins and institutional interest, outperforming Bitcoin and Ethereum which fell 18% and 27% respectively [5][6][20] - The decline was attributed to macroeconomic headwinds, profit-taking after the SEC settlement, and competition from faster blockchains [4][18][23] Performance Overview - XRP started 2025 at approximately $2.09, peaked above $3.40 in July, but fell to around $1.88 by late November, marking a 40% decline from its July highs [2][3][5] - The SEC settlement in August 2025, which included a $125 million agreement, was expected to drive price increases but instead led to profit-taking by investors [9][10][21] Market Dynamics - Macro conditions, including U.S. tariff announcements, triggered a broader risk-off sentiment, impacting all cryptocurrencies [19][20] - Despite XRP ETF inflows exceeding $1 billion shortly after approval, the price remained flat due to heavy selling from early investors and whales [7][15][16] Competitive Landscape - XRP's On-Demand Liquidity service has not generated sufficient demand to sustain price increases, with transaction volumes lagging behind competitors like Solana and Stellar [23][24] - The lack of organic demand drivers for XRP, compared to Bitcoin and Ethereum, contributed to its inability to maintain price momentum despite institutional interest [24][27] Future Outlook - The outlook for XRP in 2026 hinges on three factors: the growth of Ripple's payment network, the sustainability of ETF inflows, and resilience against macroeconomic shocks [25][28] - For XRP to recover, it must convert payment partnerships into measurable on-chain activity that drives genuine token demand [28]