XRP drops 34% from January peak as crypto reserve plan fall short

XRP peaked at $3.31 in January 2025, up 255% post-election.
RippleNet transactions now near one million per day.
SEC case nearly resolved; ETF filings remain pending.

XRP has fallen 34% to $2.18 on May 30 from its highs in January 2025, reflecting a significant retreat in investor confidence.

XRP had surged to a multi-year high of $3.31 in January 2025, rallying over 250% from November 2024 as Donald Trump’s crypto-friendly campaign victory fuelled optimism in digital assets.

The coin, once entangled in a long-running legal battle with the Securities and Exchange Commission, appeared poised for institutional acceptance and potential federal adoption.

Delayed policy execution, a muted government buying programme, and persistent macroeconomic uncertainty have combined to put downward pressure on the token, which is central to Ripple Labs’ global payments network.

Regulatory hopes, ETF filings, and the SEC case lifted investor sentiment

Two key catalysts triggered XRP’s dramatic rise between late 2024 and early 2025.

The first was the pro-crypto stance of President Trump’s campaign, which promised to update digital asset regulations, encourage US-based crypto mining, and create government-held reserves of major cryptocurrencies.

Following Trump’s win, the broader market responded positively — Bitcoin and Ethereum gained double digits, while Dogecoin doubled.

However, XRP outperformed them all with a 255% surge, amid speculation that it would feature prominently in federal crypto holdings.

Investor excitement intensified after rumours circulated that Trump’s proposed Strategic Bitcoin Reserve would be followed by a broader Digital Asset Stockpile.

With XRP’s focus on cross-border finance and its ongoing legal case nearing resolution, many investors speculated it would be included alongside Bitcoin, Ethereum, and Dogecoin.

Market participants also anticipated that the new administration would hasten the end of the SEC lawsuit against Ripple Labs, opening up institutional avenues for XRP.

Several developments supported that narrative. Financial firms submitted applications for XRP-based exchange-traded funds. Ripple Labs launched RLUSD, a stablecoin aimed at streamlining cross-border transactions.

Daily transactions on RippleNet grew from around 150,000 to nearly one million over two years, reinforcing the use-case narrative.

Reality check as federal reserve plans underwhelm

The bullish scenario began to unravel shortly after Trump’s inauguration. XRP peaked just before 20 January but has since shed over a third of its value.

A similar pattern was seen with other cryptocurrencies, including Ethereum and Dogecoin, which dropped over 27%, while Bitcoin slid 25% before bouncing back to new all-time highs.

Part of the disappointment stems from the scope of the Trump administration’s actual crypto plans. While a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile were announced in March, the portfolios were not fresh purchases.

Instead, they involved the management of existing government-held assets, largely seized through court proceedings. The hoped-for government-led accumulation of XRP never materialised.

This development led many investors to reconsider their exposure, especially amid broader market uncertainties. Concerns over trade conflicts, inflation risks, and possible tariff escalations created a risk-off environment.

XRP, with its international payments model, became particularly vulnerable as fears of declining cross-border transaction volumes grew.

Long-term utility and institutional interest remain in focus

Despite its spring slump, XRP retains several features that continue to attract long-term interest.

Ripple’s RLUSD stablecoin, for instance, offers a tool for managing global liquidity more efficiently.

Meanwhile, XRP’s integration with the RippleNet system remains one of the most widely adopted blockchain-based payment protocols globally, processing close to one million transactions per day.

The lawsuit with the SEC, which began in 2020, was announced to be dropped by the SEC.

Both the regulator and Ripple Labs were looking at a $50 million settlement.

However, a US judge rejected the joint request, citing jurisdictional and procedural issues.

In parallel, pending ETF applications signal that traditional finance firms are preparing to embrace XRP, should regulatory clarity improve.

Though investor sentiment has cooled since January, market watchers will closely follow legislative developments through summer 2025.

Any forward movement on crypto regulation, ETF approvals, or increased federal participation could swiftly change the narrative.

Until then, XRP trades in the shadow of unmet expectations, but with the infrastructure and partnerships to support a future rebound.