Disclaimer: This article is not intended as investment advice. The information and resources provided here are for educational purposes exclusively.
XRP has experienced a notable increase of 17% in 2025, surpassing many major cryptocurrencies and inching closer to regaining its position as the third-largest digital asset.
XRP has emerged as one of the top-performing cryptocurrencies this year, countering the downward trends observed in Bitcoin, Ethereum, and several other notable digital currencies. Amidst a backdrop of market declines, XRP has impressively risen by 17% year-to-date (YTD), making it the only top-10 cryptocurrency to post net gains this year. As its upward trend continues, investors are left wondering: What factors are behind this rally, and can XRP reclaim its title as the third-largest cryptocurrency by market capitalization?
At the beginning of 2025, Bitcoin and Ethereum were anticipated to lead the market; however, both have struggled to maintain their value. Bitcoin (BTC) has seen a decline of 6.62% YTD, while Ethereum (ETH) has experienced an even steeper drop of 38.38%. Likewise, Dogecoin (DOGE), another widely recognized cryptocurrency, has fallen by 39% during the same timeframe. XRP’s remarkable resilience distinguishes it from the rest, boasting a 17% YTD gain and outperforming most major digital currencies.
Investors keeping their funds in a cryptocurrency wallet are closely monitoring this trend, as XRP’s increasing market activity could indicate a shift among leading cryptocurrencies. Its market capitalization has now surpassed $142 billion and recently saw it briefly outpace Tether (USDT) as the third-largest cryptocurrency. Although it currently holds the fourth position, analysts believe that a 6-7% price increase could elevate it back over USDT, solidifying its status among the top three digital assets.
A significant factor driving XRP’s growth has been its expanding investor base. According to on-chain analytics firm Santiment, the number of XRP holders has grown by over 8% YTD, welcoming 490,000 new investors into the ecosystem, a sign of burgeoning confidence in XRP’s long-term prospects.
Moreover, there has been a substantial uptick in daily active addresses on the XRP network. At the start of the year, there were 56,261 active addresses, but that number soared to 612,340 last week. This remarkable surge in network activity signifies increased usage and engagement, which are positive indicators for future price movements. As more investors come on board, the strength of the network only continues to rise, further differentiating it from assets that have not fared well in 2025.
The price trends and growing adoption of XRP suggest that it is on track to reclaim its position as the third-largest cryptocurrency in 2025. Historically, XRP has been a powerhouse in the crypto market, and recent price developments indicate robust momentum. If it maintains its growth trajectory and achieves an additional 6-7% in value, it would likely surpass Tether (USDT) in market capitalization once more.
The potential for continued rallies is bolstered by the interest shown by institutional investors in XRP, which adds another layer of stability and upside potential for the asset. With its expanding pool of holders, rising daily active addresses, and strong price performance, XRP seems poised for further growth.
However, like any cryptocurrency, external factors such as regulatory developments, macroeconomic dynamics, and overall market sentiment will significantly influence its future direction. Changes in the U.S. Federal Reserve’s monetary policy or unfavorable legal decisions could affect XRP’s capacity for further advancement.
Nonetheless, XRP’s impressive showing in 2025 has certainly captured the attention of both retail and institutional investors alike, with its relative resilience compared to broader market downturns suggesting that even greater opportunities may lie ahead in the coming months.
Disclosure: This content is provided by a third party. No specific endorsement of any product mentioned here is implied. Users should conduct their own research before making decisions regarding the company.