How XRP's 'Incredible Year' Became A 48% Crash Despite Everything Going Right

Core Insights - XRP has experienced a significant price drop of 48% from its July peak of $3.65, despite positive developments such as winning the SEC lawsuit, attracting $1 billion in ETF inflows, and Ripple's $2.7 billion in acquisitions, indicating that regulatory victories do not necessarily lead to price increases [1][6]. Legal Developments - The SEC lawsuit against Ripple concluded in August, with both parties dropping their appeals, which reinforced a ruling that differentiated between institutional and retail XRP sales [2]. - Former SEC Chair Gary Gensler attempted a last-minute appeal just before his dismissal, reflecting the ongoing complexities of the legal situation [2]. Financial Performance and Acquisitions - Ripple invested $2.7 billion in acquisitions in 2025 to evolve into a comprehensive financial services platform, including a $1.25 billion acquisition of Hidden Road, now known as Ripple Prime, which has seen its business grow threefold [4]. - In October, Ripple acquired GTreasury for $1 billion, gaining access to Fortune 500 clients and exposure to over $12.5 trillion in annual payment flows [5]. ETF Developments - XRP spot ETFs launched in November 2025, with the Canary XRP ETF achieving $58 million in first-day volume, the highest among 2025's ETF launches [6]. - By mid-December, XRP funds had attracted $883 million in net inflows, building up to $1.25 billion in assets, despite XRP's price decline [6]. Stablecoin Performance - Ripple's RLUSD stablecoin, launched in December 2024, reached a market cap of $1.3 billion, ranking as the 11th largest stablecoin, but captured less than 0.7% of the stablecoin market, falling short of expectations [7]. Future Outlook - Ripple anticipates the CLARITY Act will pass in the first half of 2026, although there are concerns it may lead to a buy-the-rumor, sell-the-news scenario [9]. - The company plans to introduce native lending on the XRP Ledger in 2026, transitioning the network towards institutional-grade DeFi [9]. - Delays in legal resolutions, ETF launches, and the CLARITY Act have hindered anticipated market rallies for XRP [10].