XRP is experiencing a surge in key metrics, with the XRP Ledger’s circulation velocity reaching a new peak of 0.0324, marking a significant milestone for the network in 2025. This spike in velocity signals a faster rate of token movement, indicating higher liquidity within the XRP ecosystem.
Interestingly, despite these notable fluctuations in transaction speed, XRP’s price has remained relatively stable at around $2.17, suggesting that investors are accumulating positions in anticipation of future growth.
According to Stern Drew, a prominent figure in the crypto community, this price stability amidst the increased velocity hints at a strategic buildup. Investors seem to be positioning themselves for potential long-term gains, rather than reacting to short-term price movements.
With rising liquidity, the XRP network is seeing a greater flow of tokens, which could set the stage for future price increases. However, the market remains cautious, as these changes indicate a careful buildup rather than an immediate surge.
Institutional Inflows Boost XRP’s Momentum
A key driver of this uptick is the significant growth in XRP exchange-traded funds (ETFs). On the day of the velocity peak, XRP ETFs attracted $67.74 million in new inflows, bringing their total assets under management to $910 million. These ETFs have locked up over 400 million XRP tokens, roughly 0.4% of the total supply, reducing the circulating supply and potentially adding upward pressure to the token’s price.
Institutional investors, including major firms like Invesco and Franklin Templeton, are leading the charge in XRP ETF investments. Their participation reflects growing confidence in XRP as an asset, suggesting that the market is gaining traction with institutional players. This influx of capital could provide the stability and confidence needed for XRP to navigate its long-term growth, and its increasing presence is seen as an important step for the token’s market maturation.
Ripple CEO Reflects on Early Market Stage
Ripple CEO Brad Garlinghouse also recently weighed in on the growing institutional interest, stating that the market is still in its early stages. This reflects the broader sentiment within the XRP community, which views this surge in investment as only the beginning of what could be a larger shift toward greater adoption and growth.
With increasing institutional backing and rising liquidity within the XRP network, the stage seems set for potential growth. However, the market remains cautious, acknowledging that while the metrics point to positive trends, the full impact will likely unfold in the months ahead. The combination of higher token velocity and institutional involvement is a promising sign for XRP’s future trajectory.