In a bold new markets report released today, Ripple revealed that XRP surged an impressive 280% during the fourth quarter of 2024, marking one of the most explosive rallies in the digital asset’s history. This dramatic price movement wasn’t driven by speculation alone — it was fueled by a confluence of macroeconomic shifts, regulatory clarity, and growing institutional confidence in XRP and the broader XRP Ledger ecosystem.
At the heart of this momentum was a pivotal political shift: Donald Trump’s re-election, which signaled a pro-crypto administration poised to overhaul outdated financial regulations. Combined with a dovish Federal Reserve stance and increasing inflows from institutional investors, the digital asset market entered a bullish phase — with XRP emerging as a top performer.
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XRP’s Remarkable Recovery from Regulatory Pressure
For years, XRP’s growth was stifled by the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). However, a turning point came when former SEC Chair Gary Gensler resigned, removing a major obstacle in Ripple’s path. His departure, coupled with mounting criticism of the SEC’s heavy-handed approach, opened the door for regulatory realignment.
By late November, market sentiment shifted dramatically. XRP began climbing from lows rooted in legal uncertainty, eventually reaching $2.70 by December 30th — a 500% increase from its November levels**. The average price of XRP rose from **$0.55 to $1.43 over the quarter, reflecting both speculative interest and fundamental demand.
Trading volumes mirrored this surge. Daily XRP spot volume averaged **$5 billion between mid-November and December**, a tenfold jump from the $500 million seen just a month earlier. This wasn’t fleeting hype — it was sustained institutional participation.
Spot Markets Lead the Charge
Ripple’s report highlights that spot trading dominated activity, indicating long-term holding intentions rather than short-term speculation. The largest exchanges by XRP spot volume were:
- Binance: 36% of global volume
- Upbit: 20%
- Coinbase: 9%
These figures underscore growing mainstream accessibility, particularly in regulated environments like the U.S., where Coinbase’s presence signals compliance-focused adoption.
Moreover, U.S.-based institutional players such as WisdomTree and CoinShares filed applications for spot XRP ETFs, joining earlier movers like Bitwise and Canary Capital. These filings suggest that Wall Street is treating XRP not as a fringe asset, but as a legitimate investment vehicle — especially under a new administration expected to support blockchain innovation.
Even north of the border, Canada is reportedly racing to launch an XRP ETF before the U.S., further amplifying cross-border interest.
Bitcoin’s rally to $109,000 also played a supporting role, boosting altcoins across the board. The BTC/XRP trading pair surged 130% in Q4, reinforcing the correlation between Bitcoin’s dominance and altcoin momentum.
Despite volatility spiking from 40% to 200%, investor confidence remained strong — a testament to improved market maturity and clearer regulatory expectations.
Expanding Utility: XRP Ledger and Stablecoin Growth
Beyond price action, Ripple emphasized the growing utility of the XRP Ledger (XRPL) — a key factor in sustaining long-term value.
By the end of Q4 2024, Ripple Payments processed $70 billion in global transactions, powered by its native stablecoin, RLUSD. Designed as a bridge for cross-border settlements, RLUSD has been integrated into major platforms including Bitstamp, MoonPay, Uphold, and Independent Reserve, enhancing liquidity and real-world use.
To ensure transparency, Ripple implemented monthly third-party audits of RLUSD reserves — a move aimed at building trust amid growing scrutiny of stablecoin backing.
On-chain metrics tell an equally compelling story:
- XRP Ledger wallet creations soared to 709,000 (up from 140,000 in Q3)
- Trustlines increased from 7.3 million to 7.9 million, with 37,000 new lines linked directly to RLUSD adoption
- Burned XRP tokens rose from 592,000 to 724,000, reducing supply and increasing scarcity
The decentralized exchange (DEX) ecosystem on XRPL also matured rapidly. Total DEX volume surpassed $1 billion**, with **77% coming from Automated Market Maker (AMM) swaps** — up from just $31 million in Q3 to $774 million** in Q4.
This growth was enabled by Ripple’s AMM feature, launched in March 2024, which allows users to provide liquidity and earn fees directly on the ledger — all without leaving the network.
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Technical Upgrades Enhance Functionality
Ripple didn’t just rely on market forces — it actively upgraded the XRP Ledger to support advanced use cases:
- The XLS-40 amendment introduced decentralized identifiers (DIDs), enabling secure digital identity solutions on-chain.
- A native oracle protocol was integrated with Band Protocol and DIA, delivering real-time price feeds essential for lending protocols, tokenization, and algorithmic market-making.
These upgrades position XRPL as more than just a payments network — it's evolving into a full-fledged Web3 infrastructure platform.
Real-world adoption followed suit:
- Archax, an FCA-regulated digital asset exchange, partnered with asset manager abrdn to tokenize money market funds on XRPL.
- Societe Generale announced plans to deploy its MiCA-compliant euro stablecoin, EURCV, on the same network.
With 3–5 second settlement times, negligible fees, and built-in compliance tools, XRPL is increasingly seen as enterprise-ready — ideal for banks, fintechs, and regulated institutions exploring blockchain solutions.
Regulatory Breakthroughs Beyond the SEC
While the SEC appeal process continues, Ripple gained significant ground in Q4 2024:
- On January 15, the SEC filed its opening brief in the appeal — but notably, it did not challenge Judge Analisa Torres’ 2023 ruling that XRP is not a security when sold to retail investors.
- Ripple will file its response by April 16 and argues that the SEC is rehashing failed legal theories without addressing recent policy changes or market realities.
More importantly, the SEC reversed a major restrictive policy: SAB 121, which had discouraged banks from offering crypto custody services. The U.S. Government Accountability Office (GAO) found that SAB 121 violated formal rulemaking procedures — forcing its removal and opening doors for traditional finance to re-engage with digital assets.
This shift is already having ripple effects — no pun intended — across banking and asset management sectors.
Ripple’s XRP Holdings: Transparency and Strategy
As of December 31, 2024, Ripple reported holding 4.48 billion XRP, up slightly from 4.43 billion on September 30. Meanwhile, the total amount of XRP in on-ledger escrow decreased from 38.9 billion to 38.03 billion tokens.
Ripple clarified that escrowed funds are released monthly based on operational needs, with any unused tokens returned to escrow — ensuring predictable supply dynamics.
The company also noted that while it occasionally transfers XRP to third parties (such as ETP issuers or trusts), these are structured arrangements designed to keep tokens within the broader Ripple ecosystem — minimizing sell-side pressure.
Frequently Asked Questions (FAQ)
Q: Did Ripple win its case against the SEC?
A: While the full case isn’t closed, Judge Analisa Torres ruled in 2023 that XRP is not a security when sold to retail investors. The SEC has appealed certain aspects but hasn't challenged this core ruling.
Q: Is XRP available in ETF form?
A: Not yet in the U.S., but multiple firms including WisdomTree, CoinShares, and Bitwise have filed for spot XRP ETFs. Canada may launch one ahead of American regulators.
Q: What is RLUSD and why does it matter?
A: RLUSD is Ripple’s U.S. dollar-pegged stablecoin built on the XRP Ledger. It enables fast, compliant cross-border payments and supports DeFi applications through audited reserves.
Q: How fast are transactions on the XRP Ledger?
A: Transactions settle in 3–5 seconds with minimal fees, making XRPL one of the fastest and most cost-effective blockchains for global payments.
Q: Can institutions use the XRP Ledger?
A: Yes. With built-in compliance features and partnerships with regulated entities like Archax and Societe Generale, XRPL is increasingly adopted by financial institutions.
Q: What impact did Trump’s election have on XRP?
A: His pro-crypto platform boosted market confidence. Investors anticipate deregulation, banking integration, and faster approvals for crypto products under his administration.
The story of XRP in Q4 2024 is more than a price surge — it's a narrative of resilience, innovation, and institutional embrace. As regulatory clouds lift and utility expands, XRP is no longer just a cryptocurrency; it's becoming a cornerstone of next-generation financial infrastructure.
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