The cryptocurrency market witnessed a significant shift as XRP surged 13% following the U.S. Securities and Exchange Commission’s (SEC) decision to drop its case against Ripple Labs.
This legal resolution has not only injected optimism into XRP’s prospects but has also sparked speculation about the possibility of a spot XRP exchange-traded fund (ETF) gaining approval in 2025.
A major transformation is unfolding in the crypto trading landscape. Historically, Solana (SOL) dominated the spot trading scene, commanding between 70-80% of the market.
However, the tides have turned, with XRP now accounting for over 50% of the volume, according to analysts at blockchain analytics firm Kaiko. This shift signals a rising interest in XRP, supported by increasing liquidity and trading activity.
Kaiko’s data also reveals that XRP’s average 1% market depth—a key liquidity metric—has now surpassed that of SOL. This suggests that the surge in XRP trading is not a mere anomaly but a reflection of sustained market confidence.
With the SEC’s lawsuit no longer looming over Ripple Labs, market expectations for an XRP ETF have surged. Prediction markets on Polymarket have seen the probability of a spot XRP ETF approval in 2025 jump by 6%, now standing at an impressive 83%.
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Analysts suggest that with regulatory uncertainty out of the way, financial institutions may soon introduce new investment products centered around XRP.
Ripple CEO Brad Garlinghouse hinted earlier this month that XRP ETFs could arrive in the U.S. by the second half of 2025. Currently, at least ten applications—including spot, leveraged, and inverse XRP ETF proposals—are awaiting SEC approval.
Notably, investment giant Franklin Templeton recently joined the list of applicants, further fueling expectations for a forthcoming ETF launch.
The crypto derivatives market is also showing signs of increased interest in XRP. In January, the CME Group accidentally published a webpage for XRP and SOL futures. While SOL futures have already gone live, industry insiders speculate that XRP futures could follow suit now that the regulatory hurdles have been cleared.
Kaiko suggests that the market could see XRP-focused product launches in the coming months, potentially paving the way for mainstream adoption and institutional investment.
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