While major cryptocurrencies like Bitcoin and Ethereum continue to move in tandem with traditional equity markets, XRP is demonstrating a distinct and divergent trajectory. This shift is being driven by a fundamental change in market structure, initiated by the launch of approved spot ETFs in November 2025, which are channeling significant capital into the asset. Following a strong start to the year with gains exceeding 25%, a recent period of consolidation has provided a clearer view of the underlying dynamics at play.
On-Chain Data Reveals Supply Squeeze
Analysis of the XRP Ledger provides concrete evidence of a shifting landscape. The volume of XRP held on centralized exchanges has plummeted to a multi-year low of 1.6 billion tokens, representing a decline of more than 50%. This reduction in readily available coins on trading platforms inherently limits potential selling pressure.
Simultaneously, large-scale investors are accumulating. Since January 6, wallets holding between 100 million and 1 billion XRP have collectively added approximately 180 million tokens, valued at roughly $390 million. This accumulation by major holders, alongside purchasing by long-term investors during price dips, signals conviction rather than market panic.
ETF Inflows Reshape Market Dynamics
The core catalyst for this new phase is the substantial capital entering through spot exchange-traded funds. Since their inception, XRP spot ETFs have gathered over $1.3 billion in assets. This institutional demand operates like a vacuum: issuers such as Bitwise and Grayscale continuously purchase tokens from the open market to back their ETF shares. The resulting effect is a constriction of supply, which has helped the asset weather short-term profit-taking without sustaining significant downward pressure.
This mechanism has also decoupled XRP’s price action from the broader crypto market. Whereas Bitcoin and Ethereum maintain a high correlation with technology stocks, XRP is developing its own independent momentum. The divergence stems from the investor base; institutions are making targeted allocations to Ripple’s digital asset specifically, rather than making blanket investments in the cryptocurrency sector.
Should investors sell immediately? Or is it worth buying XRP?
Strategic Moves by Ripple Underpin Growth
The evolving price structure is supported by deliberate corporate strategy. Ripple CEO Brad Garlinghouse recently confirmed the successful acquisition of two platforms, Ripple Prime and GTreasury. These moves are designed to integrate XRP and Ripple’s native stablecoin, RLUSD, directly into corporate treasury management systems.
The RLUSD stablecoin itself is experiencing rapid growth, with over $1.4 billion already in circulation. This creates a regulated gateway for institutional capital to flow directly into the decentralized finance (DeFi) ecosystem built on the XRP Ledger. Furthermore, partnerships in Japan with financial giants Mizuho Bank and SMBC Nikko are advancing the tokenization of real-world assets, demonstrating utility beyond pure speculation.
A key overhang was removed with the final settlement of the SEC lawsuit in August 2025, eliminating the regulatory uncertainty that had weighed on XRP for years. The current market activity highlights the pent-up potential that is now being realized.
XRP is currently trading between $2.05 and $2.14, following a brief peak at $2.41 earlier in the week. Market technicians identify a critical support zone between $1.90 and $1.97; maintaining this level is viewed as essential for the bullish technical structure to remain intact.
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