XRP’s market cap rose 1.9% in Q1 2025 to $121.6 billion.
BTC, ETH, and SOL combined lost 22% in market cap over the same period.
XRPL daily active addresses grew 142% to 134,600.
XRP’s network fundamentals saw notable expansion in the first quarter of 2025, with Ripple Labs capitalising on infrastructure growth and institutional adoption to consolidate its market position.
According to a Messari report released in early May, XRP was the only major cryptocurrency among the top four by market cap to post gains in Q1, with a 1.9% quarter-over-quarter rise.
In contrast, the combined capitalisation of Bitcoin, Ethereum, and Solana dropped 22% over the same period.
The report also highlighted that all measurable XRP Ledger (XRPL) network metrics rose for the second consecutive quarter—a rare event since Messari began tracking XRPL in Q1 2023.
The growth trend was further reinforced by Ripple’s acquisition of prime brokerage Hidden Road and the testnet launch of the XRPL EVM sidechain.
XRPL user activity and nodes see sharp increases
The average number of daily active addresses on the XRPL reached 134,600 in Q1, marking a 142% increase quarter over quarter.
Messari noted that this level of user engagement indicates sustained interest from both long-time participants and new entrants.
Total new addresses registered in the quarter stood at 568,300, a 12% increase from Q4 2024 and up 210% compared to the same quarter last year.
A similar growth trend was observed in transactional activity. Average daily transactions rose 13% from the previous quarter to 2.04 million. Payment transactions, which had dipped 8% in Q4 2024, rebounded 36% QoQ to 1.12 million.
Daily receiver addresses surged 168% to 127,800, outpacing the 14.5% increase in daily senders. This pattern is often indicative of airdrop-driven participation, where dormant wallets are reactivated to receive token distributions.
Infrastructure growth was even more pronounced. The number of active nodes jumped from 886 in Q4 to 9,498 in Q1 2025—a 972% surge.
This dramatic increase suggests a broader interest in decentralised validation and improved support for network scalability.
Ripple’s $1.25B Hidden Road deal boosts ecosystem reach
On April 8, Ripple announced the acquisition of Hidden Road for $1.25 billion, making it the first crypto company to own a prime brokerage platform.
The move is seen as part of Ripple’s strategy to deepen XRPL’s enterprise use cases and facilitate broader adoption of Ripple’s native stablecoin, RLUSD.
As part of the integration, Hidden Road will use XRPL for post-trade operations and accept RLUSD—Ripple’s USD-backed stablecoin—as collateral. RLUSD itself saw its market capitalisation rise 304% in Q1 2025, reaching $25.9 million on the XRPL.
This reflects growing institutional confidence in Ripple’s infrastructure as a medium for value transfer and settlement.
EVM compatibility and global payments integration on the rise
The XRPL ecosystem expanded its technical scope with the launch of the XRPL EVM sidechain testnet on 31 March. Once it goes live on the mainnet in Q2 2025, this upgrade will allow developers to deploy Ethereum-compatible smart contracts using XRPL’s consensus mechanism.
The move is expected to attract decentralised finance (DeFi) developers seeking alternatives to Ethereum’s high gas fees and scalability bottlenecks.
Meanwhile, global institutions continue to integrate Ripple’s cross-border payments system. In Q1 2025, Zand Bank and fintech platform Mamo—both based in the UAE—adopted Ripple Payments to facilitate international transactions.
These developments suggest a growing preference for Ripple’s blockchain infrastructure among regulated financial entities, particularly in emerging markets seeking fast, low-cost remittance solutions.
While XRP’s price increased just 0.5% in Q1 2025, the growth in market cap was driven largely by a 1.4% increase in circulating supply.
However, the sustained rise in activity, address creation, and institutional backing points to deeper network engagement beyond speculative trading.
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