XRP entered 2025 at $2.32 but currently sits at $2.20. With all the advancements Ripple has made, why are we seeing this decline? From significant acquisitions to the closing of the SEC lawsuit, and even the launch of spot ETFs, 2025 has undoubtedly been a remarkable year for Ripple and its ecosystem. Yet, despite hitting a new all-time high earlier this year, XRP finds itself trading below its January price. What’s going on?
Ripple’s Stellar 2025
The biggest highlight of Ripple’s journey this year came in March when CEO Brad Garlinghouse announced the end of its protracted legal battle with the U.S. Securities and Exchange Commission (SEC). This prolonged lawsuit had loomed over Ripple for years, and although the final settlement entailed a smaller fee than the $2 billion originally sought by the SEC, it marked a significant victory for the company.
This pivotal moment set the stage for several strategic moves. Just a month later, Ripple made headlines by acquiring prime broker Hidden Road for $1.25 billion. The platform was subsequently rebranded to Ripple Prime, aimed at servicing institutional clients. This acquisition was labeled a “game-changer” for XRP and positioned the company for substantial growth in the institutional finance sector.
In addition, Ripple led an impressive initiative to raise at least $1 billion through a Special Purpose Acquisition Company (SPAC) to establish a digital asset treasury (DAT) firm focused on accumulating XRP. Furthermore, a $1 billion deal for treasury software provider GTreasury was also unveiled, further enhancing Ripple’s ties to corporate finance.
Another significant milestone was the purchase of Rail for $200 million, a platform designed to facilitate quicker and more transparent money transfers utilizing stablecoins and fiat currencies.
The resolution of the SEC lawsuit improved the regulatory landscape for Ripple dramatically. This positive shift became even more apparent in November when the first spot XRP ETF, offering full asset exposure, launched in the U.S. The ETF, managed by Canary Capital, set a trading volume record on its debut day in 2025.
Growing Market Interest
The excitement didn’t stop there; three additional XRP ETFs emerged shortly after, collecting over $660 million in net inflows within weeks of their introduction. All these factors combined to create an atmosphere ripe for XRP’s success—so why is the price declining?
Why Is XRP Down Then?
With such a prolific year filled with motivated initiatives, one would naturally expect XRP’s price to reflect this optimism. After all, the initial excitement following the Hidden Road acquisition and the SEC lawsuit’s conclusion had led to forecasts of massive price increases.
This optimism manifested earlier in the year when XRP matched its 2018 all-time high in January, followed by a steep decline. However, in July, the token soared past the previous peak, reaching a new high of $3.65. This dramatic rise further fueled expectations for a transformative year.
Yet, the following months took a stark turn. XRP entered into a prolonged correction phase, leading to periods where it dropped below the $2 mark. Although it regained ground, the current trading price of $2.20 still reflects a dip below its starting point of $2.32 this year.
So, what explains this paradox? The classic market adage “buy the rumor, sell the news” appears to hold true. XRP’s surge began following the favorable sentiment surrounding the U.S. elections and the anticipated regulatory shifts at the SEC. However, once the legal hurdles were cleared and the anticipated events occurred, including the launch of new ETFs, the expected gains failed to materialize, resulting instead in a downturn.
Ultimately, this may not indicate any underlying flaw in XRP’s fundamentals. Instead, it underscores how emotional dynamics profoundly affect financial markets—especially the crypto sector, where sentiments and crowd expectations often dictate price movements more than intrinsic value.
