XRP Lags Bitcoin and Ether as Supply Growth and Weak Demand Weigh
XRP continues to underperform top digital assets like Bitcoin and Ether, trading around $1.33 and staying more than 60% below its January 2018 peak of $3.55. While Bitcoin has surged 314% and Ether has gained 66% over the same timeframe, XRP token values have been constrained by persistent supply expansion and subdued trading interest.
A major driver behind the token's lagging price is supply dilution. Circulating supply expanded about 63% from 38.7 billion tokens in 2017 to 63.1 billion. At the same time, institutional inflows have lagged, with cumulative net inflows into U.S. spot XRP exchange-traded funds reaching $1.8 billion, well below the inflows for rival cryptocurrencies. Overall market engagement has also slowed, marked by a 53.5% drop in spot trading volume and a 10.7% decline in active network addresses.
Going forward, investors are watching how business priorities impact future adoption. Focus on cross-border payments infrastructure rather than higher-growth areas such as decentralized finance and artificial intelligence has influenced investor demand, alongside the long-term effects of a multi-year regulatory lawsuit with the U.S. Securities and Exchange Commission that concluded last year.
Key points
- XRP trades near $1.33, remaining about 62.5% below its January 2018 record high of $3.55.
- Circulating token supply expanded 63% to 63.1 billion since 2017, diluting individual token value.
- U.S. spot XRP ETFs have attracted $1.8 billion in net inflows, lagging broader institutional adoption.
- Trading activity declined, with spot trading volume falling 53.5% and active network addresses down 10.7%.
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How we writeDisclaimerQuestions and answers
Why has XRP underperformed Bitcoin and Ether?
XRP performance has been hampered by a 63% growth in circulating token supply since 2017, weaker institutional demand compared to major crypto rivals, and lower activity across spot and derivatives markets.
How much has the circulating supply of XRP increased?
The circulating supply of XRP expanded by roughly 63%, rising from 38.7 billion tokens in 2017 to 63.1 billion tokens, which diluted individual token value.
How much money has flowed into U.S. spot XRP ETFs?
U.S. spot XRP exchange-traded funds have gathered approximately $1.8 billion in cumulative net inflows, trailing the institutional investment levels recorded by Bitcoin and Ether spot funds.