XRP price dropped by nearly 25% in 2025 despite having its best year so far in terms of regulations and network news.
Ripple (XRP) token dropped to $1.8485 on Saturday, down by ~50% from its highest point this year. Its crash erased over $50 billion in valuation.
The XRP token plunged even after the Securities and Exchange Commission (SEC) ended the multi-year lawsuit. The agency, under Gary Gensler, accused the company of selling securities worth $1.33 billion without following the law.
Meanwhile, the same agency approved the listing of several XRP ETFs, which have accumulated over $1.3 billion in inflows since their launch in November. They have been so successful such that they passed Solana (SOL), whose ETFs were approved a few weeks before that.
The other major Ripple news was the several acquisitions the company made in a bid to boost its ecosystem. It acquired Hidden Road, Rail, Palisade, and GTreasury, and then received a $500 million investment at a $40 billion valuation.
XRP price also retreated despite the ongoing growth of the Ripple USD stablecoin, which has now accumulated over $1.4 billion in assets. It has become one of the biggest players in the stablecoin industry.
Most recently, Ripple Labs received a banking license that will enable it to offer services in the United States. It will likely provide custody solutions for the RLUSD stablecoin and its portfolio companies like GTreasury and Ripple Prime.
The main reason why the XRP price crashed despite the important news was the overall performance of the industry. Bitcoin (BTC) and most altcoins were deeply in the red during the year. It dropped by nearly 10%, with the market capitalization of all tokens falling from a peak of $4.2 trillion to the current $2.8 trillion.
XRP also dropped as investors sold the Donald Trump election news. As the chart shows, the token jumped shortly after Trump was elected in November 2024 as investors anticipated a change in regulations. It soared from a low of $0.493 to a high of $3.39 within weeks.
In most cases, investors buy an asset before a major news event and then sells when it happens as they embrace a new normal.
Technicals have also contributed to the downward momentum. It formed a giant double-top pattern at $3.39 and a neckline at $1.6118. This pattern normally leads to more downside, meaning that it may continue falling in the coming weeks.
